AMERICAN BAR ASSN
In order for a Buyer or Investor to acquire §1202 status the original sale had to be a stock sale & 5 years must pass from the date of that stock purchase to become QSBS eligible.
Example, A private equity firm bought / invested in a company for $20 million, and over the next 6 years the value of their shares increase in that company to $220 million. Using QSBS they would pay NO taxes on a sale. Taxes would only begin to be calculated after the first $220 million of sales proceeds.
#2.) Why IRC 1202 is good for America, Business owners and Investors. Easy article to read written by Howard Francis.
#3.) Detailed article for CPAs re QSBS and IRS §1202 with 127 IRS IRC footnotes.
Most Silicon Valley Venture Capitalists use IRC 1202
#1.) From American Bar Assn website. Click here to see on ABA website
QSBS OVERVIEW BY CEO
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