qualified small business stock (QSBS)

Qualified Small Business Stock (QSBS) refers to shares in certain small, active businesses that meet specific IRS criteria. If you hold QSBS for more than five years, you may benefit from significant tax advantages, including the potential to exclude up to 100% of the gains from federal taxes upon sale. This incentive encourages investment in early-stage companies, fostering innovation and economic growth. To qualify, the company must meet size limitations, operate in specific industries, and other conditions set by the IRS. QSBS can be a powerful tool for investors seeking tax-efficient growth opportunities in small, emerging businesses.