5 ms·

If you’re up for QSBS treatment, I’d recommend to hire a CPA, financial advisor, and possibly a lawyer. One of those three can send over a letter to the CEO or

by Dwolb 5y ago

If you’re up for QSBS treatment, I’d recommend to hire a CPA, financial advisor, and possibly a lawyer. One of those three can send over a letter to the CEO or CFO to share relevant information. It’s usually already prepared for equity or debt financing rounds and possibly periodic reporting.

toomuchtodo 5y ago
Appreciate the advice. Are there cut offs similar to an 83b election? Or can QSBS still apply if you're near the end of the five year wait period and you took no action at grant and exercise events (besides what you normally might for an ISO grant)? Asking so I'm not wasting the time of the involved.
- Dwolb 5y ago
  I need to say the obligatory THIS IS NOT FINANCIAL ADVICE CONSULT A TAX ACCOUNTANT. Ok so my understanding is you need to exercise your options and wait 5 years for QSBS to kick in. After that you can start selling at $0 in capital gains. Just a heads up though, this tax treatment may get closed soon with upcoming federal legislation. May not apply to shares exercised prior to the legislation being enacted though. Note: here are some people who talk about QSBS as well https://www.mossadams.com/articles/2021/04/qualified-small-business-stock-tax-benefits https://www.mossadams.com/articles/2021/04/qualified-small-b...
  - toomuchtodo 5y ago
    No worries, understood, hold harmless and all that jazz. Thank you for the time and the info.
    - Dwolb 5y ago
      Yup, good luck.
- toast0 5y ago
  83b has reporting requirements (you've got to send it in within x days of exercise and again with your 1040 for that tax year, although the second one is maybe not super required: regulations say you must send it, but I think there's rulings that say otherwise), but QSBS doesn't really: you just say some of your capital gains (more or less) don't count on the QSBS form. Only if you're audited do you provide documentation.

by Dwolb 5y ago

toomuchtodo 5y ago

Appreciate the advice. Are there cut offs similar to an 83b election? Or can QSBS still apply if you're near the end of the five year wait period and you took no action at grant and exercise events (besides what you normally might for an ISO grant)? Asking so I'm not wasting the time of the involved.

Dwolb 5y ago
I need to say the obligatory THIS IS NOT FINANCIAL ADVICE CONSULT A TAX ACCOUNTANT. Ok so my understanding is you need to exercise your options and wait 5 years for QSBS to kick in. After that you can start selling at $0 in capital gains. Just a heads up though, this tax treatment may get closed soon with upcoming federal legislation. May not apply to shares exercised prior to the legislation being enacted though. Note: here are some people who talk about QSBS as well https://www.mossadams.com/articles/2021/04/qualified-small-business-stock-tax-benefits https://www.mossadams.com/articles/2021/04/qualified-small-b...
- toomuchtodo 5y ago
  No worries, understood, hold harmless and all that jazz. Thank you for the time and the info.
  - Dwolb 5y ago
    Yup, good luck.
toast0 5y ago
83b has reporting requirements (you've got to send it in within x days of exercise and again with your 1040 for that tax year, although the second one is maybe not super required: regulations say you must send it, but I think there's rulings that say otherwise), but QSBS doesn't really: you just say some of your capital gains (more or less) don't count on the QSBS form. Only if you're audited do you provide documentation.