Tax Strategies
QSBS Tax Strategies
QSBS Tax Strategies
Meet QSBS Requirements (Optimal Tax Treatment). The QSBS tax exemption can allow you to exclude 100% of capital gains (up to $10 million; perhaps more). But you must meet a large number or criteria.
Exercise ISOs/NSOs Prior to a QSBS Disqualifying Event. If you own options in a company about to disqualify for QSBS, exercising your options before this event allows the purchased shares to qualify for preferential QSBS Treatment.
QSBS "Stacking" (Via Gifts and Using Trusts). Gifting QSBS stock and/or utilizing irrevocable trusts can allow you to multiply the QSBS tax exclusion well beyond $10 million.
QSBS "Packing" (Invest with Property). Investing more than $1mm in a QSBS eligible company enables a QSBS exclusion above $10mm via the 10x rule. Property can also be invested (vs. cash), which increases strategic options.
QSBS 1045 Exchange. If your QSBS is sold before meeting the 5-year holding period, you can consider rolling the gains into a new QSBS investment using a 1045 exchange to maintain QSBS eligibility.
Cross-Listed Tax Strategies
In addition to the above QSBS tax strategies, a number of other tax strategies may also apply in certain situations. We encourage you to review all of the strategies detailed on the 50+ Tax Strategies page to ensure you have the proverbial "full menu" of tax planning strategies to consider for your situation.
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