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QSBS / Section 1202 calculator

Federal gain exclusion on Qualified Small Business Stock held five years or more.

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QSBS (Section 1202) calculator

Model the federal gain exclusion on Qualified Small Business Stock held five years or more.

Gain
$7,950,000
Federal excluded
$7,950,000
Cap: greater of $10M or 10× basis
Federal savings
$1,583,330
vs no QSBS treatment

Total tax after QSBS: $0 (federal CG $0 · NIIT $0 · state $0)

QSBS savings are worth documenting carefully

Section 1202 would save approximately $1,583,330. A fee-only advisor who does this daily can work through the options with you. Free match.

Match me with a QSBS-experienced CPA

Educational only · verify original issuance, C-corp status, $50M gross-asset test, and active-business requirement before relying on Section 1202

How to read the result

Section 1202 lets you exclude up to the greater of $10M or 10× your basis in federal capital gains on eligible C-corp stock held at least five years. The stock must have been acquired at original issuance from a company with under $50M in gross assets at the time.

This tool is educational. It uses 2025 single-filer federal brackets, a simplified state-tax model, and does not substitute for a CPA review of your specific facts. For a second set of eyes on a meaningful event, match with a fiduciary advisor who routinely works with equity compensation.

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Find an advisor who understands equity compensation

Short form. We match you with up to three fee-only advisors who routinely work with RSUs, ISOs, and pre-IPO equity.

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