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| | 3.3.2: Note on Qualified Small Business ("QSB") Stock and Rollovers Sections 1202 and 1045 - Encyclopedia - Library - ... |
 | | The first, which is discussed in the first section of this memorandum, is Code Section 1202, which allows a taxpayer, other than a corporation, to exclude 50% of the gain from the sale or exchange of QSB stock that has been held for more than five years. |
 | | The second provision, which is discussed in the second section of this memorandum, is Code Section 1045, which allows a taxpayer to roll over gain from the sale of QSB stock that has been held for more than 6 months. |
 | | Generally speaking, Code Section 1202 is intended to apply to stock in a qualified small business acquired at original issuance, and, in limited circumstances, to certain QSB stock received after the date of issuance. |
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