The Most Overlooked Tax Break for Long-Term Investors: Qualified Small Business Stock Gain Exclusion
The section 1202 qualified small business stock (QSBS) gain exclusion is one of the most overlooked tax breaks for long-term investors. The QSBS gain exclusion allows noncorporate taxpayers to exclude up to 100% of capital gains earned when they sell QSBS that they held for more than five years.