A tax break in the One, Big, Beautiful Bill Act is a boon for founders of successful startup businesses. Before the new law, the qualified small business stock exclusion generally enabled early investors (who acquired stock when a company was worth less than $50 million) to pay no tax on the first $10 million in gains. To qualify, they must have held company stock for at least five years. Now, initial investments in companies of $75 million qualify for a break after only three years of holding stock. And if investors hold it for at least four years, $15 million in gains are tax-free. Contact us to learn more about the qualified small business stock gain exclusion.
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