DRAFT — pending professional review

NOT LEGAL OR TAX ADVICE. This module is reference material for the HigherSelf Network cohort. Pending Lumina tone review, outside-CPA review, ERISA-counsel review for any Solo 401(k) or ROBS section, and Grace Fields authorization before external publication. Cohort-facing facts use anonymized framing until written consent is on file.

exit strategy

Qualified Small Business Stock — § 1202

IRC § 1202

Eligibility

Best when: C-corp with gross assets ≤ $50M; active business (not certain service businesses); long-horizon exit.
Do not use when: Pass-through entity (LLC / S-corp); SSTB; horizon < 5 years.
Amount / cap: Up to 100% gain exclusion on sale of QSBS held > 5 years; cap of greater of $10M or 10× basis per issuer

Documentation

Original-issue stock certificate
Gross-asset test at issuance
Active-business test annually
Holding-period tracking

Applies to

HigherSelf Network

Interacts with

ROBS — Rollover as Business Startup

Research only — not legal or tax advice