Silicon Valley's QSBS Tax Break Strategy Spreads to Mainstream Business Owners
By
Ben Steverman
Worth a glance, not a chew.
Summary
A tax avoidance strategy originally pioneered in Silicon Valley—using Section 1202 of the tax code for Qualified Small Business Stock (QSBS)—is gaining traction among business owners and investors across the US. The provision allows for avoiding taxes on billions of dollars in capital gains and is now being explored beyond the tech startup world at business gatherings nationwide.
Key quotes
· 2 pulledAt business breakfasts and investor lunches across the US, the topic du jour is a strategy pioneered in Silicon Valley to avoid paying taxes on billions of dollars of capital gains.
Company owners and their advisers are exploring how they, too, can benefit from an obscure provision of the tax code, Section 1202 for 'qualified small business stock,' better known as QSBS.
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