July 10, 2014

The LARGE tax benefits of small business stock

Did you recently acquire or sell original issue stock in a small business?

Did you receive a distribution of small business stock from an investment partnership?

Did your investment partnership sell small business stock during the year?

You may have Qualified Small Business Stock (“QSBS”) and may be eligible for the accompanying tax benefits of QSBS.  QSBS is stock of a U.S. “C” Corporation with gross assets of less than $50 million before and immediately after the issuance of the stock.  Depending on when you acquired the QSBS, you may be able to exclude anywhere from 50% to 100% of your capital gain on the sale of the stock.

More specifics about QSBS requirements, gain exclusion, gain rollover, and restrictions can be found here: QSBS REQUIREMENTS AND INFO