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Income Taxes › Capital Gains › Qualified Small Business Stock

Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect... more +
Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect income taxes based on a progressive scheme, while others may utilize a proportional or regressive framework. less -
WilmerHale

State Taxation of Qualified Small Business Stock: Federal Tax Exclusion Not Always Replicated at State Level

WilmerHale on

In the event of an M&A transaction, many stockholders plan to take advantage of the exclusion from federal taxable income of gain realized from the sale or exchange of “qualified small business stock” (QSB stock). Section...more

Greenberg Glusker LLP

Harry Potter and the Chamber of Secret QSBS Exclusions

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Are your shareholders leaving money on the table? Certain tax planning strategies, much like magic spells in the Wizarding World of Harry Potter, require some pre-ordained incantations in order to bring them to life. The...more

Keating Muething & Klekamp PLL

Two New Private Letter Rulings Inform Code Section 1202's Qualified Trade or Business Analysis

Keating Muething & Klekamp PLL on

Section 1202 of the Internal Revenue Code provides savvy business founders and investors an opportunity for large tax savings. In fact, if the entity and the business exit are structured correctly, upon an exit, the founders...more

Miller Nash LLP

Today in Tax: Qualified Small Business Stock, Opportunity Zones, Information Reporting for Digital Assets

Miller Nash LLP on

A brief commentary on the past week’s cases, rulings, notices, and related federal tax guidance. Medical Software Deemed a Qualifying Trade for Qualified Small Business Stock Gain Exclusion When certain criteria are met,...more

Foster Garvey PC

House of Representatives 5376: Current Tax Legislation Pending in the U.S. House of Representatives

Foster Garvey PC on

...The federal tax laws are certainly about to change. With the need to raise revenue as a top priority for the Biden Administration, everyone is expecting dramatic changes to the Internal Revenue Code. Tax legislation is...more

ArentFox Schiff

“Should Five Percent Appear Too Small, Be Thankful I Don’t Take It All”: Ways and Means Committee Advances Tax Increase and Reform...

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The House Ways and Means Committee advanced key tax reform proposals on September 15 that would increase taxes for corporations and high-income individuals. Several tax reform proposals are under consideration as part of...more

Cooley LLP

Alert: Proposed Federal Tax Legislation Would Reduce QSBS Benefit and Raise Capital Gain Rates

Cooley LLP on

Last week, the House Ways and Means Committee announced its consideration of federal tax legislative proposals that include reducing the exclusion from income of gain on the sale of qualified small business stock (QSBS) and...more

Smith Anderson

Gain Without Pain: Qualified Small Business Stock and Section 1202 of the Internal Revenue Code

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With the prospect of an increase in capital gain income tax rates looming on the horizon, what could be more welcome than an exclusion of 100% of gain from income? That is exactly what Section 1202 of the Internal Revenue...more

Troutman Pepper

Time to Consider Section 1202 Stock

Troutman Pepper on

As widely discussed, the Treasury Department released “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals,” which includes a potential increase in the long-term capital gains rates for taxpayers...more

Fenwick & West LLP

Qualified Small Business Stock: Common FAQs by Startup Founders and Investors

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We receive many questions from founders, investors and others about qualified small business stock. And it’s no wonder, given the complexity of the concept. In this article, we provide a high-level overview of QSBS. A...more

Farrell Fritz, P.C.

Carried Interest, Qualified Small Business Stock, And Excluded Gain: So Happy Together?

Farrell Fritz, P.C. on

Water, Water Everywhere, Nor Any Drop to Drink- At the beginning of every week, after posting that week’s article, I start to think about a topic for the next post. There are times when I struggle to find something that...more

WilmerHale

Not So Fast…the (Unexpected) Consequences of Allowing Your Employees to Early Exercise Options

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From time to time, and primarily when the economy is booming, allowing stock options to be “early exercised” - that is, allowing options to be exercised before they are vested - becomes in vogue. We are in one of those times....more

Polsinelli

Small Business Investors Can Save Big with New IRS Code Amendments

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Recent amendments to the Internal Revenue Code of 1986 (the Code) have significantly expanded the opportunity for tax savings under Section 1202. Section 1202, which was originally added to the Code in 1993, provides relief...more

Foley Hoag LLP

A "PATH" to Substantial Tax Savings: Qualified Small Business Stock

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In the early 1990s, Congress enacted the qualified small business stock (“QSBS”) rules to incentivize equity investments in certain corporations. The QSBS rules reduce the effective federal income tax rate on the gain...more

Latham & Watkins LLP

Congress Permanently Extends Capital Gains Exclusion for Qualified Small Business Stock

Latham & Watkins LLP on

Tax law change is good news for non-corporate investors. On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) into law. The PATH Act retroactively renews and...more

Snell & Wilmer

Excluding 100% of Gain From the Sale of Qualified Small Business Stock Acquired in 2013

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If you own a small business, it may be easier to raise money in 2013. This is because, among the favorable tax breaks included under the American Taxpayer Relief Act (the “2012 Act”), there is a temporary extension of the...more

Mintz

Fiscal Cliff Legislation Extends Tax Incentive to Invest in Small Businesses

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As a result of the recent “fiscal cliff” legislation, otherwise known as the American Taxpayer Relief Act of 2012 (2012 Tax Act), many individual investors are expecting future tax increases, either in the form of higher...more

Foley Hoag LLP

Congress Extends the 100% Tax Exemption for Gain on Certain Qualified Small Business Stock, With Retroactive Effect, Through 2013

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On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (the “Act”). Among its provisions, the Act extends a tax benefit whereby capital gains from the sale or exchange of certain...more

Perkins Coie

Investment Window For Capital Gains Tax Exclusion For Certain New Investments In Small Businesses Extended To December 31, 2013

Perkins Coie on

On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (the Act). Among other provisions, the Act provides that the 100% exclusion from gross income of certain capital gains from sales...more

Baker Donelson

Congress Extends Exclusion for Investors in Qualified Small Businesses

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Among the taxpayer-favorable aspects of the American Taxpayer Relief Act of 2012 (Act), the 100 percent exclusion from gross income of gain on the sale of Qualified Small Business Stock (QSBS), provided for in section 1202 of...more

Morgan Lewis

Congress Extends 100% Gain Exclusion for Small Business Stock

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Favorable tax treatment applies to certain acquisitions of qualified small business stock in 2012 and 2013 and may influence choice-of-entity decisions....more

Dechert LLP

American Taxpayer Relief Act of 2012 Approved by Congress and Signed by the President

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Summary - President Obama on January 2, 2013 signed into law the American Taxpayer Relief Act of 2012 (the “Act”). The Act extends certain tax rates, tax credits, and other provisions previously enacted by other tax...more

Troutman Pepper

Fiscal Cliff Tax Changes

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On New Year’s Day 2013, the “American Taxpayer Relief Act of 2012” (the Act) was enacted to avoid the impact of automatic “fiscal cliff” tax increases. The Act, effective January 1, 2013, retains and makes permanent the...more

Troutman Pepper

American Taxpayer Relief Act Of 2012 Extends Temporarily Full Exclusion From Gross Income Of Gain From Qualified Small Business...

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On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (H.R. 8) (the Act) to avert certain tax increases set to take effect in 2013. The Act included, among many other provisions, an...more

Davis Wright Tremaine LLP

President Obama Proposes to Expand and Make Permanent Zero Capital Gains on Small Business Investments

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On January 31, 2012, President Obama sent a Startup America Legislative Agenda to Congress that included a proposal to “expand and make permanent zero capital gains on small business investments,” which is presumably a...more

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