QSBS.
Section 1202, one question at a time: how long you have to hold, which rules your stock is on, what your state does about it, and how options, SAFEs, and secondaries change the answer.
QSBS calculator
Enter the dates, the basis, and your state. It routes the position to the right rulebook and shows what the gain is worth today, and on every tier you haven't reached yet.
QSBS Benefits for Angel Investors
Qualified Small Business Stock (QSBS) is a tax benefit that can make angel investing even more attractive. Under Section 1202 of the Internal Revenue Code, if…
How Long Do You Have to Hold Stock for QSBS?
Five years for the full exclusion. That part hasn’t changed. What changed in July 2025 is what a shorter hold is worth, and the answer now depends on the day…
QSBS Rules Before and After July 4, 2025
The One Big Beautiful Bill Act rewrote Section 1202 on July 4, 2025, and it did so without touching anything already issued. Stock acquired after that date…
Why QSBS Gain Is Taxed at 28%, Not 20%
Run a three-year sale through the QSBS calculator and the tax on the half that isn’t excluded comes out at 28% federal, not the 20% long-term capital gains…
Which States Tax QSBS Gains?
Section 1202 is a federal rule. Most states inherit it automatically, because their income tax starts from federal income and gain the exclusion removed never…
QSBS and SAFEs: When the Holding Period Starts
Most angel checks today go in on a SAFE, and most angels measure their QSBS holding period from the day the money left. Those two facts don’t fit together.…
QSBS for Stock Options: When Your Clock Starts
Section 1202 tests the stock, not your job title, and the statute never mentions employment. An employee who exercises options and holds the shares clears the…
Do RSUs Qualify for QSBS?
In principle, yes. In practice, almost never. The reason is timing, and it’s the same timing that makes stock options tricky, pushed one step further.
Tender Offers, Secondary Shares, and QSBS
Section 1202 requires original issuance. Your stock has to have come from the company itself, in exchange for money, property, or services. That single…
QSBS for Non-US Investors
Section 1202 is an exclusion from US federal income tax. It can only help you if you owe US federal income tax on the gain in the first place, and if you’re…
Section 1045 Rollovers: The QSBS Escape Hatch
Every angel investor eventually learns about QSBS — the tax break that can wipe out federal taxes on millions of dollars in startup gains. Far fewer know about…
Costly QSBS Mistakes
Qualified Small Business Stock (QSBS) can be a powerful tax break for angel investors. If you qualify, you could exclude $15 million or more of gains from…