Qualified Small Business Stock - 0.2 CPE

A Tax-Free Exit Starts With the Right Structure.

Qualified Small Business Stock (QSBS) can allow founders and investors to exclude significant capital gains from federal taxation, but only when strict requirements are met from the beginning.

Entity choice, original issuance, asset limits, active business rules, holding periods, and documentation all determine whether the exclusion is preserved or lost.

Learning Objective

Distinguish between qualifying and nonqualifying QSBS transactions and assess how entity structure, holding periods, and eligibility rules affect the available tax exclusion.

Course Description

This nano-learning course examines the rules, eligibility requirements, and planning opportunities associated with qualified small business stock (QSBS) under IRC §1202.

Who Should Take This Course

Tax and accounting professionals advising founders, investors, startup clients, and business owners on entity selection, equity planning, or business exit strategies.

Why This Course Is Important

QSBS treatment can create a major tax advantage, but the benefit depends on meeting technical requirements before the stock is issued and throughout the holding period. Missteps involving entity structure, asset thresholds, redemptions, or documentation can eliminate the exclusion and create costly tax consequences.

Author / Instructor

Lee T. Reams, Sr., BSME EA
Lee T. Reams, Sr. is an Enrolled Agent with extensive experience in tax preparation, representation, and advanced tax planning. He is known for helping practitioners apply complex tax rules in real-world client situations.

Course Details

This course qualifies for NASBA continuing professional education credit. CountingWorks, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Plan for the QSBS Exclusion Early

Start Qualified Small Business Stock and learn how to preserve eligibility for one of the most powerful exclusions in the tax code.