Section 1202 exclusion of gain on qualified small business stock

[njtw]

I'm just seeking confirmation that the Section 1202 exclusion of gain on QSBS does NOT apply to sale of stock by a shareholder who PURCHASED the stock from an 'original' owner.

[George4Tacks]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[njtw]

This is for one of my clients who is seeking a second opinion. Thanks.

[itonewbie]

In your client's case, §1202 will not apply since it was not purchased at its original issue directly or through an underwriter.  See §1202(c)(1).