How To Avoid Millions of Dollars In Capital Gains Tax By Using The Qualified Small Business Stock Exclusion

Most entrepreneurs don’t know of a simple way to avoid millions of dollars in capital gains tax. Section 1202 of the Internal Revenue Code grants non-corporate taxpayers a tax break of up to $10,000,000 in capital gains on “qualified small business stock” that the taxpayer holds for more than five years. This is a hugeContinue reading “How To Avoid Millions of Dollars In Capital Gains Tax By Using The Qualified Small Business Stock Exclusion”

Qualified Small Business Stock: Redemption Issues

By Susan Schalla & Joe Wallin If you are not familiar, Section 1202 of the Internal Revenue Code provides startup founders and investors with a very significant potential tax break on the ultimate sale of their stock, if the stock is “qualified small business stock.” What is the Tax Break? The tax break is significant.Continue reading “Qualified Small Business Stock: Redemption Issues”

Qualified Small Business Stock Options

Now that the qualified small business stock 100% tax exclusion is going to be permanent, one question that will come up more often is: Qualified Small Business Stock Options Do optionees qualify? Meaning, do holders of compensatory stock options, who exercise those options and acquire stock–can they qualify for the Section 1202 qualified small business stockContinue reading “Qualified Small Business Stock Options”

Qualified Small Business Stock: 100% Exclusion

You might be wondering about the status of the 100% tax exclusion for qualified small business stock acquired during certain periods and held for more than five years. Late last year, the Congress extended the 100% tax exclusion for qualified small business stock acquired: 1) after the date of the enactment of the Creating Small BusinessContinue reading “Qualified Small Business Stock: 100% Exclusion”

Qualified Small Business Stock: 100% Exclusion To Become Permanent

In the big tax bill the Congress just passed, Congress made the 100% exclusion for gain on qualified small business stock held for more than five years permanent. You can find the text of the bill at Congress.gov. Qualified Small Business Stock You might remember that the Congress has extended the 100% exclusion several times, butContinue reading “Qualified Small Business Stock: 100% Exclusion To Become Permanent”

Tax Free Startup Company Stock

If you are not familiar, last December the Congress and the President made permanent one of the most significant tax breaks probably ever made available to founders and investors in startups. They created something that they could have rightfully called, “Tax Free Startup Company Stock.” What am I talking about? Well, last December the CongressContinue reading “Tax Free Startup Company Stock”

The RAISE Act: Good News for Tech Workers

The RAISE Act would allow holders of stock in private companies to more easily sell their shares. Sales of private company stock are known as “secondary transactions.” Secondary transactions are currently hard to do because of the securities law restrictions on sales of shares in private companies, and also because companies frequently impose a number ofContinue reading “The RAISE Act: Good News for Tech Workers”