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 a … 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 stock … Continue reading Qualified Small Business Stock Options

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, but … Continue reading Qualified Small Business Stock: 100% Exclusion To Become Permanent

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 Business … Continue reading Qualified Small Business Stock: 100% Exclusion

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 Congress … Continue reading Tax Free Startup Company Stock

Tax Free Founder Stock

If you are thinking about starting an early stage tech company, one of the first things you will have to figure out is what type of legal entity to form. Fortunately, there are only a few choices available to you. Your choices are basically only 1 of the following 3 possibilities: an LLC taxed as a … Continue reading Tax Free Founder Stock

Founder Tax Issues

My colleague Susan Schalla and I have been making videos for Nick Hughes’ Founders Live Group, which are followed by AMA chat sessions. In this video, we talk about tax issues for founders, primarily: The 83(b) election — when it applies; when it doesn’t; when it is due; etc. Qualified Small Business Stock considerations in … Continue reading Founder Tax Issues

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 of … Continue reading The RAISE Act: Good News for Tech Workers