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What is Qualified Small Business Stock or QSBS?


Qualified Small Business Stock (QSBS) is a tax benefit whose purpose is to encourage long term investment in small businesses. Gains on investments that qualify as QSBS can be eligible for reduced or deferred tax treatment.

For more information on this topic please see:

-Journal of Accountancy: Qualified small business stock - Jones Day: Update on Qualified Small Business Stock: New Federal Legislation and Status of California Rules - AICPA: Sec. 1202: Small Business Stock Capital Gains Exclusion - GROCO: Section 1202: Small Business Stock Gain Exclusion

Please note: This is for informational purposes only. Do not take this as tax advice. Please check with your tax advisor.

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