Glossary entry · code section
§1202
IRC section providing the gain exclusion on qualified small business stock. OBBBA §70431 restructured the regime: tiered 50% / 75% / 100% exclusion at 3 / 4 / 5 years held; $15M per-issuer cap; $75M aggregate-asset threshold.
Canonical reference
See 26 U.S.C. §1202 (Cornell LII) for current statutory text. OBBBA §70431 restructured the regime — pre-July-4-2025 stock continues under the legacy 5-year, 100%-exclusion, $10M-cap framework; post-July-4-2025 stock falls under the tiered exclusion, $15M cap, $75M asset threshold. Full coverage on the OBBBA reference page.
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