Section 1202 offers significant tax benefits, but maintaining eligibility during the holding period requires careful attention to details. This webinar will explore common pitfalls and traps that can jeopardize the ultimate gain exclusion for shareholders upon exit.
Our Section 1202 specialists will guide attendees through key topics such as disqualified activities and assets, the measurement of the gross assets, and documentation best practices. We’ll also dive into the nuances of subsidiary ownership and address some of the “unknown” areas of QSBS that may increase risk with a Section 1202 strategy. Finally, we’ll discuss how recent legislative changes under the One, Big, Beautiful Bill may impact newly issued shares and what that means for planning going forward.
Learning objectives:
- Understand how changes in operations and ownership structure during the holding period can impact the ultimate Section 1202 gain exclusion.
- Identify strategies for managing excess cash to avoid exceeding limitations for assets outside of the qualified trade or business.
- Evaluate how different subsidiary structures can impact Section 1202 requirements.
- Understand the importance of documenting each transaction from incorporation through exit.
- Identify some of the undefined and gray areas in Section 1202 to understand potential risk areas.
- Explore how recent changes under OBBB affect newly issued QSBS shares.
