What Is QSBS Stacking?
If you’re a founder staring down a $30 million personal exit, here’s a harsh reality: Section 1202’s qualified small business stock (QSBS) exclusion caps out at $10 million per person,
July 22, 2026
If you’re a founder staring down a $30 million personal exit, here’s a harsh reality: Section 1202’s qualified small business stock (QSBS) exclusion caps out at $10 million per person,
You’ve spent years building something. Now, with an exit on the horizon, the question shifts from how to grow the company to how much of the proceeds you actually get
Most founders research the Section 1202 exclusion, learn their per-person cap, and stop there. The per-person cap ($10 million for stock issued on or before July 4, 2025, $15 million
Here’s something most founders don’t fully grasp until they’re already in a deal: the QSBS exclusion doesn’t scale with the size of your company’s exit. It scales with the number
Planning to sell your business in the next 12 to 36 months? Your current state of residence could cost you millions in unnecessary taxes on that exit. A California founder
Section 1202 of the Internal Revenue Code offers entrepreneurs and early-stage investors one of the most powerful federal tax benefits available: the ability to exclude up to 100% of eligible
Selling Qualified Small Business Stock (QSBS) can mean the difference between paying zero federal taxes or writing an eight-figure check to the IRS. A founder with $40 million in qualifying
Understanding QSBS holding-period rules can mean the difference between paying no federal tax on eligible gain and losing millions in exclusions. A founder who sells stock after 36 months forfeits
Maximize Your Startup Exit Through Strategic QSBS Planning Every day you wait to plan your QSBS strategy costs you money. The difference between a well-orchestrated QSBS exit and a reactive
Section 1202’s Qualified Small Business Stock (QSBS) tax exclusion offers one of the most powerful wealth-building tools available to venture-backed founders. With the potential to eliminate federal taxes on up
The aggregate gross assets test is where many founders lose millions in QSBS benefits without knowing why. You held stock for five years (or, for QSBS issued after July 4,
When you’re staring down a potential $40 million personal exit, the difference between understanding and misunderstanding Qualified Small Business Stock (QSBS) can mean millions of dollars. Most founders focus on