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Section 1202 exclusion of gain on qualified small business stock

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Level 1

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.

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Level 15

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.

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ex-AllStar
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Level 1

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

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Level 15

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).

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Still an AllStar