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Quiz 7 - The Holy Grail of Startup Equity - Qualified Small Business Stock (QSBS) (Email 7)

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Question 1 of 4

Simple Homework: Briefly research your company's funding history. Is there any sign that the company's gross assets were under $50 million when you got your grant?

 

(You might have to ask around or check financial news articles. It's a first step, not a final answer!)

A

Yes

B

No

C

I can't find it

Question 2 of 4

What is the primary benefit of Qualified Small Business Stock (QSBS)?

A

It allows you to sell your stock at any time without a holding period.

B

It ensures you have to pay taxes on your stock options as ordinary income.

C

It allows you to exclude up to $10 million in capital gains from taxes.

D

It guarantees your stock will be profitable.

Question 3 of 4

To qualify for the QSBS tax benefit, what is the minimum time you must hold your stock?

A

1 year

B

10 years

C

3 years

D

5 years

Question 4 of 4

How does an 83(b) election relate to qualifying for QSBS?

A

It guarantees that your company's gross assets are under $50 million.

B

It starts the 5-year QSBS holding period from the early exercise date.

C

It eliminates the need to hold the stock for 5 years.

D

It is required for all stock options to qualify for QSBS.

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