Section 1202 QSBS
Qualified Small Business Stock (“QSBS” or “Section 1202 stock”) is stock acquired from a US corporation that was a “small business” when the investment was made.
If held for more than 5 years, the gains on exit are tax-free for US federal income tax purposes.
Section 1045 Rollover
Under Section 1045, gains on small business stock held for at least 6 months but less than the full 5 years, can be deferred or potentially permanently excluded if they are reinvested into another small business within 60 days of the original exit.
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