Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo...
by tarunupaday on Friday August 27, 2021 @02:14AM
(#28324813)
QSBS allows way more than $2M/year of tax deduction.
- 10M cap applies to per entity per year per transaction. so if 10 of my investments every year have gain of $10M each - I pay exactly ZERO DOLLARS in state and federal taxes on this $100 million income every year.
- On top of it, If I make more than $10 million in a year on one transaction - there are ways to split this gain over multiple years (via deferred transactions) or over multiple entities (via trusts and LLCs)
I know on good authority that most GPs in venture funds pay very little capital gains tax due to QSBS “loophole”.
- 10M cap applies to per entity per year per transaction. so if 10 of my investments every year have gain of $10M each - I pay exactly ZERO DOLLARS in state and federal taxes on this $100 million income every year.
- On top of it, If I make more than $10 million in a year on one transaction - there are ways to split this gain over multiple years (via deferred transactions) or over multiple entities (via trusts and LLCs)
I know on good authority that most GPs in venture funds pay very little capital gains tax due to QSBS “loophole”.