Qualified small business stock

Definition

Under § 1202 of the [wex:Internal Revenue Code], stock of a domestic [wex:C corporation] whose aggregate gross assets do not exceed $50,000,000 before or immediately after issuance. A taxpayer who acquires qualified small business stock at its original issue and holds it for more than five years may exclude 50 percent of any gain from a sale or exchange of that stock from his or her [wex:gross income]. 

Illustrative caselaw

See, e.g. Natkunanathan v. Comm'r of Internal Revenue, T.C.M. 2010-15 (T.C. 2010).

See also

  • [wex:Income tax]

  • [wex:Deduction]

  • [wex:Tax credit]