Qualified small business stock

In accounting, qualified small business stock means original-issue stock of a domestic C corporation with gross assets of $75 million or less at issuance that lets holders exclude gain on sale — for stock issued after 4 July 2025, 50% after three years, 75% after four and 100% after five, up to the greater of $15 million or ten times basis per issuer. Stock issued earlier keeps the old rules: $50 million of gross assets, five years, $10 million.

Layer: Lexicon
Defined in: Lexicon
Also called: QSBS, Section 1202
Nearby: 4

Authority

This definition follows IRC §1202.

Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.

For founders

The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.

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What it is not called

Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.

small business stock unqualified

Nearby in the catalog

No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.