Episode 2 of 6
The QSBS Question
Fiona learns that her shares may qualify for the Section 1202 QSBS exclusion — potentially $10M in federal capital gains tax-free. But the rules are strict and she may have already missed a window.
Key Insight
QSBS requires shares held 5+ years in a qualified small business C-corp with under $50M in assets at issuance. Fiona qualifies on all counts — her $1.8M in gains at a $15M exit would be 100% federal tax-free, saving $357k vs. long-term capital gains rates.
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