The stock of a qualified small business is known as a Qualified Small Business Stock (QSBS). The stock needs to be issued by a domestic C corporation that does not have more than $50 million of gross assets as of the date the stock was issued and immediately thereafter to qualify.
The benefit of QSBS consists of giving owners the opportunity to exclude all or a portion of the gain they realized on certain sales. QSBS gain exclusion was implemented to spur investment in certain small businesses by granting a tax incentive for investors when they eventually sell their QSBS.
We have compiled a questionnaire in order to determine if the stock meets the Federal requirement for QSBS.