Qualified small business stock

{
  "id": "MLC-T-LAW-004069",
  "term": "Qualified small business stock",
  "field": "Law",
  "definition": "Stock that a domestic C corporation issues directly to a taxpayer and that meets the tests of Section 1202 of the Internal Revenue Code, including an active qualified business and limited gross assets when issued. A noncorporate holder may exclude part or all of the gain from federal income tax on a sale after a minimum holding period. For stock issued after July 4, 2025, the asset limit is $75 million and the exclusion phases in at three, four, and five years; earlier stock has a $50 million limit and requires five years.",
  "url": "https://mlchart.com/terminology/law/qualified-small-business-stock/"
}