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Question

How does QSBS help reduce taxes when selling a business?

Answer

Qualified small business stock (QSBS) under Section 1202 lets eligible C corporation shareholders exclude a portion of their capital gains from federal income tax. Stock held for five or more years may qualify for a 100% gain exclusion up to $15 million per taxpayer. A tiered exclusion also applies: 50% after three years and 75% after four years for stock acquired after July 4, 2025.

Related FAQs

How can a wealth advisor help before I sell my business?

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Work & Business Small Business Asset Protection Business Owners Protecting Your Legacy Generational Wealth Women Business Owners Selling a Business FAQs
Last Updated Oct. 20, 2026
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