Are You QSBS Eligible?
Section 1202 has strict requirements. Use this interactive checklist to assess if your stock might qualify. Click each card to toggle your status. All must be "Yes" to qualify.
Domestic C-Corporation
Must be a U.S. C-Corp (not S-Corp or LLC) at issuance and during holding.
Assets Under $50M
Gross assets must be ≤$50M at all times before and immediately after issuance.
Original Issuance
Stock acquired directly from the company (money, property, or services), not secondary market.
Qualified Business
Active business usage (80%+ assets). No banking, hospitality, farming, or professional services.
Select all criteria above to check status.
The $10 Million / 10x Exclusion Cap
How much can you actually save? The exclusion is limited to the greater of $10 million OR 10 times your adjusted basis (initial investment). Use the sliders to model different exit scenarios.
Input Scenario
Calculated Cap
Tax-Free Gain
$0
Taxable Gain
$0
The 5-Year Journey
Time is your most valuable asset. Section 1202 requires a minimum 5-year holding period. Click on the milestones below to understand the rules at each stage.
Issuance
6 Months
< 5 Years
5 Years
Red Flags & Disqualifying Events
Even if you meet the initial requirements, certain business types or company actions can disqualify your stock. Explore the grid below to identify common pitfalls.
Qualified Trades?
Click a sector to check QSBS eligibility.
The Redemption Trap
Stock buybacks (Redemptions) can retroactively disqualify QSBS status for all shareholders, not just the seller.
Significant Redemptions
Company buys back >5% of aggregate stock value within 1 year before/after your issuance.
Related Party Redemptions
Company buys ANY stock from you or a related party within 2 years before/after issuance.