Skip to content

Glossary entry · code section

QSBS

Qualified Small Business Stock — stock issued by a domestic C-corp meeting the §1202(c) tests (active-business, $75M asset threshold post-OBBBA). Eligible for the §1202 gain exclusion when held the required period.

Canonical reference

QSBS eligibility tests live in §1202. Active-business test, original-issuance, redemption rules, and the post-OBBBA $75M aggregate-asset threshold all apply. See the OBBBA reference for the new tiered exclusion (50/75/100% at 3/4/5 years) and $15M cap.