Whether you should hold or sell your qualified small business stock (QSBS) depends on your specific situation. The full five-year hold maximizes the federal exclusion, but the new three- and four-year partial exclusions create flexibility if liquidity needs or market conditions favor an earlier exit. A Mercer Advisors tax professional can help you weigh the after-tax outcome of each scenario, considering the 28% rate on nonexcluded gain at the shorter holding periods.
We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.
