Section 1202 of the IR Code Tax Breaks for Small Businesses Section 1202, also called the Small Business Stock Gains Exclusion, is a portion of the Internal Revenue Code (IRC) that allows capital gains from select small business stock to be
Understanding Section 1202: The Qualified Small Business . . . The “qualified small business stock” (QSBS) tax exemption under Section 1202[1] allows non-corporate founders and investors in certain emerging growth companies to potentially exclude up to 100 percent of the U S federal capital gains tax incurred when selling its stake in the start-up or small business
Understanding the qualified small business stock gain exclusion Section 1202 provides investors an opportunity to exclude some or all of the gain realized from the sale of qualified small business (QSB) stock held for more than five years The gain exclusion is available provided all requirements are met, but is also subject to limitations
26 U. S. C. § 1202 - U. S. Code Title 26. Internal . . . - FindLaw Partial exclusion for gain from certain small business stock (a) Exclusion -- (1) In general --In the case of a taxpayer other than a corporation, gross income shall not include 50 percent of any gain from the sale or exchange of qualified small business stock held for more than 5 years (2) Empowerment zone businesses -- (A) In general
What Is the 1202 Exclusion and How Does It Work for Small . . . Explore how the 1202 exclusion can benefit small business stockholders by reducing capital gains tax through specific eligibility criteria The 1202 Exclusion is a tax provision designed to incentivize investment in small businesses by offering significant capital gains tax relief
26 USC 1202: Partial exclusion for gain from certain small . . . Partial exclusion for gain from certain small business stock In the case of a taxpayer other than a corporation, gross income shall not include 50 percent of any gain from the sale or exchange of qualified small business stock held for more than 5 years