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With stock options would the 5 year clock start only when the options are exercised, when they were granted, or when they vested?
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When you join the company needs to be valued less than $50 million (by the article), the price of the actual stock doesn't matter.
So like Eric Schmidt could use this if he cashed out his Google options?
Earlier quoted context omitted.
When you join the company needs to be valued less than $50 million (by the article), the price of the actual stock doesn't matter.
So like Eric Schmidt could use this if he cashed out his Google options?
It's not a loophole, it's a specific tax break for people cashing out of "small" businesses. ("small" means at the time you joined -- it can have grown huge since.) QSBS can save you a lot, but it can be a lot of work to file too. I ran up about $20k in accountant bills doing it on a complex deal. If you're selling founder or early-employee stock, ask your accountant if QSBS is right for you.
Loophole doesn’t have a strict definition. Almost any deduction could be a loophole. Usually it is referring to anything that helps people with high incomes avoid paying taxes.
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Ok, we've replaced 'loophole' with the name of the thing above.
The New York Times headline uses the word “loophole.” It’s not appropriate to rewrite that headline simply because you don’t like it. If “loophole” were an incorrect choice of words it would not be in the headline. EDIT to add I understand moderation is a thankless job and thank you for doing it. But I disagree with this particular call.
Wow, that's... generous.
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True, and if poor people could hire lobbyists and tax attorneys, they’d get more loopholes too.
Progressive tax rates, the doubled standard deduction, child tax credit, EITC, and Medicaid expansion are all pretty sweet “loopholes” for those on the lower end of the AGI spectrum.
Earlier quoted context omitted.
True, and if poor people could hire lobbyists and tax attorneys, they’d get more loopholes too.
Progressive tax rates, the doubled standard deduction, child tax credit, EITC, and Medicaid expansion are all pretty sweet “loopholes” for those on the lower end of the AGI spectrum.
Does anyone have insight into whether QSBS could go away in the foreseeable future? We're not interested in selling our small SaaS business now, but will in the next 2-10 years. It would be a shame to miss out on this.