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Qualified Small Business Stock Sales

Qualified Small Business Stock Sales

Course Specifics

CPE Credit: 1 Hour

Field of Study: Taxes, Federal Tax

Course Level: Intermediate

Prerequisite: Basic familiarity with provisions of Section 1202.

Advance Preparation: None

Delivery Method: Self-Study

IRS Program Number: UBWMF-T-00345-25-S

CTEC Course Number: 6209-CE-00257

NASBA Sponsor ID: 116347

50 Minutes

Qualified Small Business Stock Sales

Course Description

I.R.C. §1202 offers significant tax incentives by allowing up to a 100% exclusion on gains from the sale of qualified small business stock (QSBS), making investments in small businesses more appealing. To benefit, taxpayers must carefully follow complex rules related to the acquisition and sale of QSBS. This provision was made permanent under the PATH Act and applies to stock acquired after December 31, 2014.

Learning Objectives

  • Identify what gains are eligible for exclusion under §1202
  • Define current tax treatment of QSBS
  • Recognize pre-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

Last Modified: 8/1/2025

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