Qualified Small Business Stock Sales

Course Description

The tax incentives under I.R.C. §1202 provide taxpayers with an opportunity to maximize potential tax savings while making investments in small businesses more attractive. When enacted on August 11, 1993, §1202 allowed for a 50% exclusion for gains recognized for the stock of qualified small business corporations that are not S corporations. The qualified small business stock (QSBS) gain exclusion increased to 75% for QSBS issued after February 17, 2009, and then to 100% for QSBS issued after September 27, 2010. No gain exclusion is available for stock issued before August 11, 1993.

To realize these benefits, careful navigation of the many complex rules related to the acquisition and subsequent sale of QSBS is needed.

Learning Objectives

In this course, you will learn to:

Identify what gains are eligible for exclusion under §1202
Define tax treatment of QSBS
Recognize per-issuer limitation on eligible gains
Calculate a five-year holding period
Identify operating rules related to pass-through entities
Determine how to offset short positions and application limitations of §1202

Duration: 50 minutes
Who Should Attend: All tax practitioners advising individual and business clients
Course Level: Intermediate
Prerequisite: Basic familiarity with provisions of Section 1202
Advance Preparation: None
Delivery Method: Self Study - Internet Based
NASBA: 116347
IRS CE: UBWMF-T-00345-25-S
CTEC: 6209-CE-00257
Expiration: In accordance with NASBA standards, access to this course will terminate one year from the date of purchase. Incomplete courses will no longer be accessible beyond the one year deadline.

Last Modified: 10/9/2025