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New Tax Law Boosts Appeal of Qualified Small Business Corporations

Qualified Small Business

Qualified Small Business Corporations come with their share of tax gains and benefits, as well as rules and regulations.

Would you like to invest in a business¬†that allows you to subsequently sell your stock tax-free? That may be possible with qualified small business corporation (QSBC) stock that’s acquired on or after September 28, 2010. Sales of QSBC stock are potentially eligible for a 100% federal income tax exclusion. That translates into a 0% federal income tax rate on your profits from selling stock in a QSBC.

Here’s what you need to know about the 100% stock sale gain exclusion rules, including important restrictions and how this deal may be even sweeter under the Tax Cuts and Jobs Act (TCJA). Read more