Qualified Small-Business Stock: The New Frontier

Although it has been a part of the U.S. Tax Code since 1993, Internal Revenue Code Section 1202 has received relatively little attention among taxpayers and their financial advisers. In the right circumstances, the benefits of Section 1202 can be substantial: the exclusion from taxation of a substantial part, or even all, of the taxable gain that would otherwise be recognized on the sale of a business.