Section 1202 QSBS: Expanded Tax Benefits Under the OBBBA
The Qualified Small Business Stock (QSBS) exclusion, governed by Section 1202 of the tax code, has historically provided a crucial incentive for investment in eligible C-corp startups. This benefit allowed founders and early investors to exclude up to $10 million in capital gains, or 10× the investment basis, from federal taxation, provided the stock was held for a minimum of five years.
