News & Analysis as of

Capital Gains Qualified Small Business Stock Startups

Dickinson Wright

One Big Beautiful Bill Act Expands QSBS Tax Incentives for Small Business Investment

Dickinson Wright on

On July 4, 2025, President Trump signed the “One Big Beautiful Bill Act” (the “OBBB”), which makes a number of highly beneficial changes to the tax treatment of Qualified Small Business Stock (“QSBS”) acquired by...more

Tarter Krinsky & Drogin LLP

New Tax Law Increases the Benefits for Qualified Small Business Stock

Benefits Offer Enhanced Tax Exclusions and Eligibility for Founders, Early Employees, and Investors- The recently enacted One Big Beautiful Bill Act makes several taxpayer-friendly revisions to the rules governing Qualified...more

Hughes Hubbard & Reed LLP

Expansion of Qualified Small Business Stock Tax Benefits

On July 4, President Donald Trump signed a budget reconciliation bill entitled the “One Big, Beautiful Bill Act” (the Act). The Act extends the tax cuts that were enacted as part of the Tax Cuts and Jobs Act of 2017, adds a...more

Bodman

One Big Beautiful Bill Act Reinforces and Enhances Qualified Small Business Stock Tax Savings – A Benefit for Prospective Startup...

Bodman on

The One Big Beautiful Bill Act (H.R. 1, 119th Cong § 70431 (2025)) (“Act”) was signed into law by President Trump on July 4, 2025, after narrowly passing the House on July 3, 2025....more

Pillsbury - Propel

Qualified Small Business Stock: Tax Benefits for Startup Investors are Bigger and More Beautiful

Pillsbury - Propel on

In a move to bolster investment in small business, the “One Big Beautiful Bill Act” (“OBBBA”), signed into law on July 4, 2025 (the “Applicable Date”), introduced significant changes to the Qualified Small Business Stock...more

Mintz - Tax Viewpoints

QSBS Benefits Expanded Under One Big Beautiful Bill Act

Mintz - Tax Viewpoints on

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (OBBBA), which included revisions to Section[1] 1202 for “qualified small business stock” (QSBS) unchanged from those initially introduced in the...more

WilmerHale

Section 1202 “Qualified Small Business Stock” Tax Benefits May Be Significantly Expanded as Part of Tax Package

WilmerHale on

On June 16, 2025, the Senate Finance Committee released its draft legislative text (the Senate Proposal) following the prior passage of the One Big Beautiful Bill Act by the House of Representatives (the House Bill). ...more

Wilson Sonsini Goodrich & Rosati

Understanding Section 1202: The Qualified Small Business Stock Exemption

The “qualified small business stock” (QSBS) tax exemption under Section 1202 allows non-corporate founders and investors in certain emerging growth companies to potentially exclude up to 100 percent of the U.S. federal...more

Rivkin Radler LLP

Wendy & Jen Wreck the Movies: Hobson’s Choice (1954) or The Importance of Not being a Jerk

Rivkin Radler LLP on

Henry Hobson is a widowed blowhard who fancies himself superior to everyone because he owns a shoe business. Hobson’s daughter Maggie actually runs the business, but Hobson does not pay her....more

Gould + Ratner LLP

New Tax Bill Puts a Stop to Incentives for Startup Investing

Gould + Ratner LLP on

Proposal’s Effect Would Limit Access to Capital for Small Businesses - An overlooked provision of the new, sweeping tax bill currently under consideration by Congress as part of President Joe Biden’s $3.5 trillion...more

The Rodman Law Group, LLC

Section 1202 and QSBS, an Often Overlooked Tax Benefit for Small Businesses

In the excitement of starting a new business, and during the headaches associated with growing that business, many entrepreneurs overlook important details that can have huge impacts on their finances. One large blind spot...more

Fenwick & West LLP

Qualified Small Business Stock: Common FAQs by Startup Founders and Investors

Fenwick & West LLP on

We receive many questions from founders, investors and others about qualified small business stock. And it’s no wonder, given the complexity of the concept. In this article, we provide a high-level overview of QSBS. A...more

Cooley LLP

Blog: What is Qualified Small Business Stock and Why Does It Matter for You and Your Startup?

Cooley LLP on

Over the past 25 years, the US tax code has given founders and investors a significant tax break. Taxpayers holding qualified small business stock (“QSBS”) may be able to avoid tax on all or part of their gain from the sale...more

Dickinson Wright

Minimizing Federal Income Tax on Sale of Qualified Small Business Stock

Dickinson Wright on

A taxpayer who is considering the sale of certain stock may have the opportunity to exclude or defer part or all of the gain on such sale. To be eligible for the exclusion or deferral, such stock must be “qualified small...more

Mintz

Tax Law Changes Favorable to Venture Capital and Private Equity Investors

Mintz on

The “Protecting Americans from Tax Hikes” (PATH) Act was recently signed into law, and two provisions in particular benefit venture capital, private equity, and other investors owning or planning to purchase a corporation....more

K&L Gates LLP

Tax Exclusions for Sale of Stock Issued by Qualified Small Business Corporations Becomes Permanent — At Least Temporarily

K&L Gates LLP on

Over the past several years, Congress has sought to incentivize investment in small businesses by allowing taxpayers to exclude gains in certain small business stock sales. Gradually, Congress continued to increase these...more

McCarter & English, LLP

QSBS Tax Incentives Extended . . . For Now - Venture Capital and Early Stage and Emerging Companies Alert

McCarter & English, LLP on

What happened? - In the wee hours of December 16th, Congress passed H.R. 5771, the Tax Increase Prevention Act of 2014 (“TIPA”), a stopgap measure that, among other things, retroactively extends certain tax incentives...more

K&L Gates LLP

Exclusion from Tax for Stock Issued by Qualified Small Business Corporations

K&L Gates LLP on

On November 3, 2010 and January 18, 2011, we issued client alerts discussing the opportunities provided by the Section 1202 exclusion from tax on gain realized on the sale of certain stock issued by a “qualified small...more

Davis Wright Tremaine LLP

President Obama Proposes to Expand and Make Permanent Zero Capital Gains on Small Business Investments

On January 31, 2012, President Obama sent a Startup America Legislative Agenda to Congress that included a proposal to “expand and make permanent zero capital gains on small business investments,” which is presumably a...more

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