June 20, 2011

Tax Strategies for Small Business Investors

Jill Lervold, senior tax partner, recently spoke at the prestigious San Francisco Tax Club. She discussed the unique tax planning opportunities related to investing in qualified small business stock (QSBS).

What is QSBS?

Generally QSBS is stock of a US C corporation whose gross assets are less than $50 million.

What are the tax saving opportunities?

  • Potentially 50% to 100% Federal taxable gain exclusion (5 year holding period required)
  • Deferral (rollover) of gain opportunities (6 month holding period required)
  • California has some of the same provisions but there are additional requirements for companies to qualify

Questions? Contact Us!

If you have any of the following investments in relation to QSBS, please contact us to discuss planning considerations:

  • Stock options
  • Convertible debt
  • Angel investments