Qualified small business stock (QSBS) refers to shares in a qualified small business corporation held for more than five years. Under Section 1202 of the Internal Revenue Code, eligible shareholders may exclude capital gains from federal income tax up to the greater of $10 million or 10 times their adjusted basis in qualifying stock. Eligibility depends on various factors, including the type of business, when shares were acquired, and how the stock was held. A tax advisor should review your specific situation well before the wealth transfer is complete.