• If you take the QSBS exclusion, you should hold documentation that specifies information like how long you’ve held your shares and the value of the company at the time the shares were acquired.
• To increase the QSBS exclusion, gifts and transfers of shares must be made to a taxpayer. This can include an irrevocable trust for a family member, but it has its complications.
• Employees with options can utilize QSBS, but the option must be exercised to begin the clock for holding purposes and the company must be below $50MM at the time of exercise.

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Published on SVB Private (December 2023)