Qualified Small Business Stock

The Scoop on Qualified Small Business Stock

About QSBS: Once upon a time Qualified Small Business Stock (QSBS) sat in an ignored corner of the Internal Revenue Code, a lonely tax incentive that nobody wanted to play with — a tax-law ugly duckling.   Then, one day, QSBS turned into a beautiful swan — the perfect tax incentive for your Black Swan Event. QSBS is now arguably the most important incentive for business in the Internal Revenue Code, and is likely to grow even more so under the Biden Administration.  QSBS allows a successful investor to exclude gain up to $10 million, or ten times the basis of the initial investment, so long as the stock and the underlying business meet certain criteria, and the investor holds the QSBS for at least five years. Moreover, each investor can multiply these wealth and tax benefits by making gifts to children, and transfers into trust for children and others. Yes, the benefits are huge. But…