What is QSBS or Section 1202? What is Section 1045?

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.


AngelList and its affiliates are not tax advisors and do not provide tax advice. All decisions regarding the tax implications of your investments should be made in consultation with your independent tax advisor.

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