Bigger Benefits for (Bigger) Small Businesses: Q.S.B.S. Changes in O.B.B.B.

Volume 12 No 5    /    Read Article

By Wooyoung Lee, Galia Antebi, and Nina Krauthamer

The Qualified Small Business Stock” (“Q.S.B.S.”) rules broadly allow for tax-free sales of Q.S.B.S., up to a certain limit. The benefit is subject to meeting several requirements, among which is a requirement for a five-year holding period by the seller. In their article, Galia Antebi, Nina Krauthamer and Wooyoung Lee explain that the One Big Beautiful Bill (“O.B.B.B.”) causes the Q.S.B.S. benefit to be significantly more investor friendly. It allows for more gain exclusion, bigger businesses to qualify, and partial exclusions for holding periods shorter than five years.  See more →