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QSBS (Qualified Small Business Stock)

What is 'QSBS (Qualified Small Business Stock)'

A qualified small business stock (QSBS) is simply the stock or share of a qualified small business (QSB). A qualified small business is defined as a domestic and active C-corporation whose gross assets (valued at original cost) do not exceed $50 million as of the date the stock was issued and immediately after issuance.

Explaining 'QSBS (Qualified Small Business Stock)'

A qualified small business stock (QSBS) is specifically any stock that was acquired from a qualified small business after August 10, 1993. In order for the investor to claim the stock as qualified for tax purposes, s/he must have acquired the stock at its original issue (not the secondary market) with cash or property or as payment for a service. Also, it’s not enough to just purchase or acquire the stock; the investor has to have held the stock for at least five years to reap the tax benefits of a QSBS.


Further Reading


… the deadline: Exclusion of 100% of QSBS gain: Take steps before the end of 2013 to apply favorable rules on gain from the sale of qualified small business stock
www.questia.com [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

Private equity and qualified small business stock: tax implications of various holding company structures for control investmentsPrivate equity and qualified small business stock: tax implications of various holding company structures for control investments
jpe.pm-research.com [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

Excluding 100 Percent of Gain from the Sale of Qualified Small Business Stock Acquired in 2013Excluding 100 Percent of Gain from the Sale of Qualified Small Business Stock Acquired in 2013
heinonline.org [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

A Limited-Time Opportunity for Small Business StockA Limited-Time Opportunity for Small Business Stock
www.questia.com [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

2011: A Boom Year for the Qualified Small Business2011: A Boom Year for the Qualified Small Business
heinonline.org [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

Qualified Small Business StockQualified Small Business Stock
www.questia.com [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

Qualified Small Business Stock Under Irc § 1202: Tax-Free Money for the Masses?Qualified Small Business Stock Under Irc § 1202: Tax-Free Money for the Masses?
papers.ssrn.com [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

Incorporating a Partnership to Take Advantage of the Qualified Small Business Stock RulesIncorporating a Partnership to Take Advantage of the Qualified Small Business Stock Rules
heinonline.org [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …

How Private Equity Fund Managers Can Cash in on Tax Benefits of Qualified Small Business StockHow Private Equity Fund Managers Can Cash in on Tax Benefits of Qualified Small Business Stock
heinonline.org [PDF]
… million ($5 million for married persons filing separately), less the total amount of eligible gain (ie … skill." Thus, it is unclear which trades or businesses will fail the qualified business test as a … investors should plan to complete purchases of stock that could qualify as QSBS before the …


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