In this session we will discuss the significant planning opportunities available with Qualified Small Business Stock. We will start with the basic rules and definitions, however, quickly morph into the unique opportunities that exist within Section 1202. Using practical examples we will illustrate the strategies that exist to exclude greater than the $10M exclusion, discuss rollover techniques when the five-year holding period hasn’t been met and also prepare you, as a practitioner, with the knowledge necessary to assess your risk with claiming the exclusion on your client’s tax returns.
Identify the basic requirements to qualify for the QSBS exclusion both from the company perspective and the individual investor.
Describe the planning opportunities to multiply the $10M exclusion by creating trusts, gifting, and leveraging the Section 1202 basis rules.
Explain as a practitioner the risks associated with reporting QSBS exclusions on your client’s tax returns and the level of comfort required to support such tax positions.
Recognize and understand QSBS Schedule K1 footnotes and what you need to inquire of your client to determine eligibility as it relates to factors such as holding period and carried interest.