QSBS Limits Raised • Hacker News Board

Re: QSBS Limits Raised

#21

Post by mitchellh » Sat, Jul 05, 2025, 10:10 PM UTC

nine_k wrote: post #3

So it applies to a situation when you hold stock of a company that's large enough to issue stock, but is, and has always been, small enough to never have more than $50M in assets, and you must hold the stock for at least 5 years. How common is that?

For any startup that actually reaches a sizable liquidity event of any form, it's very common.

As background: I cofounded a startup that made a lot of people millionaires. QSBS really helped a lot of people. Yeah, if you're going to make deca-millions anyways then it seems like a handout, but if you're "only" making a few million dollars it's the difference between retiring and not.

Re: QSBS Limits Raised

#22

Post by CPLX » Sat, Jul 05, 2025, 10:27 PM UTC

Did this actually happen? My understanding is that this was in one version of the Senate bill but the final one has now passed and I’m seeing no mention of this anywhere which makes me assume it didn’t make the final version.

Interested to be proven wrong if someone has a link but unless they do this headline might be misleading.

Re: QSBS Limits Raised

#23

Post by phonon » Sun, Jul 06, 2025, 1:11 AM UTC

nceqs3 wrote: post #19

This is such a stupid exemption. Most small businesses are not Delaware C corps, so they don't even qualify. Total handout to SV.

Not Delaware specific. Just C Corp (since they issue stock.)

Re: QSBS Limits Raised

#24

Post by usmannk » Sun, Jul 06, 2025, 1:20 AM UTC

CPLX wrote: post #22

Did this actually happen? My understanding is that this was in one version of the Senate bill but the final one has now passed and I’m seeing no mention of this anywhere which makes me assume it didn’t make the final version. Interested to be proven wrong if someone has a link but unless they do this headline might be misleading.

you spooked me but indeed it's in the final version: https://www.congress.gov/bill/119th-congress/house-bill/1/te...

> Sec. 70431. Expansion of qualified small business stock gain exclusion.

Re: QSBS Limits Raised

#25

Post by WorkerBee28474 » Sun, Jul 06, 2025, 1:30 AM UTC

Man I wish Canada had this. Right now it's a 1mm-per-lifetime exemption. Giving up some ability to tax startup investors would be a small and worthwhile price to pay for encouraging more business formation.

Re: QSBS Limits Raised

#26

Post by sanderjd » Sun, Jul 06, 2025, 1:41 AM UTC

mehulashah wrote: post #15

Its funny. Generally, people in the startup world frowned on this bill because of the cuts to essential services. Nonetheless, we’re thrilled about the expansion of QSBS. Perhaps there’s always a silver lining.

It might benefit me someday, but that doesn't mean I'm "thrilled" about it. Government policy is about more than just getting yours.

Re: QSBS Limits Raised

#27

Post by sanderjd » Sun, Jul 06, 2025, 1:45 AM UTC

gkedzierski wrote: post #20

mehulashah wrote: post #15

Its funny. Generally, people in the startup world frowned on this bill because of the cuts to essential services. Nonetheless, we’re thrilled about the expansion of QSBS. Perhaps there’s always a silver lining.

Section 174 being revoked (for US based R&D) is probably an even larger immediate benefit.

And IMO more clearly good. QSBS, like the mortgage deduction, is good for me personally, but still questionable policy in my view.

Re: QSBS Limits Raised

#28

Post by lostmsu » Sun, Jul 06, 2025, 2:41 AM UTC

nceqs3 wrote: post #19

This is such a stupid exemption. Most small businesses are not Delaware C corps, so they don't even qualify. Total handout to SV.

LLCs not eligible? Sad

Re: QSBS Limits Raised

#29

Post by [deleted] » Sun, Jul 06, 2025, 2:58 AM UTC

sanderjd wrote: post #26

mehulashah wrote: post #15

Its funny. Generally, people in the startup world frowned on this bill because of the cuts to essential services. Nonetheless, we’re thrilled about the expansion of QSBS. Perhaps there’s always a silver lining.

It might benefit me someday, but that doesn't mean I'm "thrilled" about it. Government policy is about more than just getting yours.

[deleted]

Re: QSBS Limits Raised

#30

Post by jiveturkey » Sun, Jul 06, 2025, 3:59 AM UTC

jusob wrote: post #14

underyx wrote: post #6

Earlier quoted context omitted.

This also applies for options exercised before the company reaches $50M in assets. And then the gain from a valuation from $50M to say $1B is all excluded.

Not just exercised, but bought before the company reaches $50M in assets.

just exercised