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Technical

Qualified Small Business Stock: Considerations for 100% Gain Exclusion Logo aicpa

  Dominic Maldonado, CPA, and Louis Taptelis, CPA |   Free |   AICPA |   01 Mar 2016 |   Tax Adviser Magazine

Some noncorporate taxpayers who dispose of qualified small business stock (QSBS) in a taxable transaction may potentially exclude the entire gain for federal tax purposes. This article discusses the criteria to be met to qualify for the exclusion, why the exclusion has not been utilized much in the past, considerations for holding QSBS in partnerships, alternative deferral when holding period not met, potential pitfalls, and action steps.

Topics covered:
  • Tax: Technical: Individual income taxation : Income, Intermediate

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