How is the qsbs issue spotter calculated?

QSBS issue spotter

A rules-based screen that lists the qualified small business stock questions worth reviewing with your CPA. Its only output, on every path, is a list of review items - it never decides eligibility and never computes an exclusion.

Is the corporation a C corporation?

Is the holder an individual (or an owner through a pass-through) rather than a corporation?

Did you acquire the stock at original issuance, directly from the corporation?

Was the stock issued after July 4, 2025, and otherwise eligible?

Has the holding period for the potentially applicable tier been met?

Were the corporation's aggregate gross assets not exceeding the applicable ceiling immediately before AND immediately after your issuance?

Did the corporation use at least 80% of its assets (by value) in the active conduct of a qualified trade or business during substantially all of your holding period?

Any redemptions by the corporation around your issuance, or prior transfers of the stock?

Review items for your CPA

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This screen lists review items only. QSBS qualification is fact-specific across the corporation's history, the stock's issuance and transfers, the holder, and the applicable gain limits - including state-tax treatment, which differs. It cannot be determined by a questionnaire. Review the full picture with your CPA and tax counsel. Rules referenced: IRC Section 1202 as amended; source: thetaxadviser.com Section 1202 coverage. Not tax or legal advice.

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QSBS issue spotter

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