NTA2225. Section 1202 Qualified Small Business Stock: Requirements and Traps for the Unwary

In this session, we will discuss the exclusion of gain from the sale of qualified small business stock. We will walk through the statutory requirements that must be met for stock to meet the definition of QSBS, the limitations that apply on gain, identify planning opportunities to maximize the exclusion, and point out traps the unwary that may cost a taxpayer the exclusion.

Learning Objectives:

• Identify the tests that must be met at the corporate and shareholder level for stock to meet the definition of QSBS.
• Determine the cumulative and annual limitations on the Section 1202 exclusion.