Section 1202 contains one of the most substantial tax incentives out there, but many investors and founders are unaware that it even exists.
Dan Mayo, leader of Withum’s National Tax Services Group, joins Michael to discuss the ins and outs of Qualified Small Business Stock (QSBS).
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Episode Highlights
- Overview of the potential to use Section 1202 to eliminate capital gain on the sale of stock.
- Requirements that both individuals and companies must meet to be eligible to take advantage of QSBS.
- Mechanics for eliminating capital gains via QSBS.
- Common mistakes made by companies that can jeopardize this tax incentive.
- Regulatory outlook for the QSBS tax incentive.
Episode Resources
- Top 10 Things To Preserve Qualified Small Business Stock Treatment
- Section 1202 (see (e)(3) for excluded businesses)
Today’s Guest: Dan Mayo, Withum
About The Tax Efficient Investor Podcast
On the Tax Efficient Investor podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.