In this episode, our host, Daniel Rohr, a seasoned CPA, Personal Financial Specialist, and Enrolled Agent, unravels the intricacies of Section 1202 of the Internal Revenue Code, a little-known but powerful tax incentive designed to encourage investments in qualified small businesses.
Daniel delves deep into the concept of Qualified Small Business Stock (QSBS) and breaks down how investors can potentially exclude a significant portion of their capital gains from taxation. He discusses how QSBS works, provides tangible examples, and outlines both the stockholder and issuing corporation level eligibility requirements that must be satisfied to claim the exclusion.
Are you an LLC considering conversion into a C Corp to tap into the benefits of QSBS? Daniel answers this question and many more. He underscores the importance of proper timing, the right process, and seeking advice from a knowledgeable tax professional to maximize the tax benefits of Section 1202.
Disclaimer: This podcast provides general information and discussions about tax and related subjects. The information provided by the podcast host is not intended to and does not constitute financial or tax advice, and no listener should rely on any content in this podcast as such. Always consult a tax professional for your specific needs and circumstances.