Sullivan
Microsoft has discontinued support for Internet Explorer. To access the Sullivan website, please install a modern browser like Microsoft Edge or Google Chrome.

Lewis Greenwald, Douglas Schneidman, and Eric Rietveld contributed the article “Investors Shouldn’t Miss This Often-Unseen Tax Code Opportunity” to the Insights & Commentary section of Bloomberg Tax [sub req’d] on July 1, 2025.

Considering possible provisions in The One Big Beautiful Bill Act that could further sweeten the deal for investors, Lew, Doug, and Eric highlight the powerful tax benefits of the frequently overlooked Qualified Small Business Stock Exclusion (QSBS) under Section 1202 of the tax code.

Currently, the QSBS provision allows investors to exclude up to the greater of $10 million or 10 times their investment in QSBS from capital gains tax, provided certain outlined requirements are met.

Emphasizing the existing value in this exclusion, they go on to examine how pending legislation, The One Big Beautiful Bill Act, could further augment the opportunity available to investors through allowing partial exclusions for QSBS held less than 5 years, raising the $10 million dollar exclusion to $15 million, and by increasing the corporate asset limit to $75 million.