IRC Section 1202 Qualified Small Business Stock Checklist

Summary

This Qualified Small Business Stock Checklist should be used to help an investor determine whether a specific investment qualifies as qualified small business stock (QSBS) under Section 1202 of the Internal Revenue Code. Section 1202 provides that certain taxpayers who are holders of QSBS may qualify for an exclusion from their gross income of the gain recognized on the sale or exchange of QSBS, provided that the holders, the issuing company, and the stock meet certain criteria.