STRATEGY 10: Qualified Small Business Stock (QSBS – Section 1202)

What it is:

Exclude up to $10M (or 10x investment) in gains

Who it applies to:

Startup founders and early investors

How to execute:

Invest in a C-Corp

Ensure assets < $50M

Hold shares for 5+ years

Sell and claim exclusion

Key compliance points:

Must meet Section 1202 requirements

Risk:

Failure to qualify results in full taxation.

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