The stock must qualify as small business stock. What are the restrictions?
(quoting just a bit of the very detailed GROCO article)
For QSBS purchased between September 27, 2010 and December 31, 2010, a zero percent effective income tax rate will apply to at least the first $10 million of gain upon its ultimate sale if applicable requirements are met. Excluded gain from these investments will not be treated as a preference item for AMT purposes, so the benefits extend equally to AMT taxpayers. ...
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The stock must qualify as small business stock. What are the restrictions?
(quoting just a bit of the very detailed GROCO article)
For QSBS purchased between September 27, 2010 and December 31, 2010, a zero percent effective income tax rate will apply to at least the first $10 million of gain upon its ultimate sale if applicable requirements are met. Excluded gain from these investments will not be treated as a preference item for AMT purposes, so the benefits extend equally to AMT taxpayers. ...
http://www.groco.com/readingroom/invest_qsbs.aspx