Qualified small business stock

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Under § 1202 of the Internal Revenue Code, stock of a domestic 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 gross income

Illustrative caselaw

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

See also