QSBS Exclusion Calculator
Free QSBS exclusion calculator estimates Section 1202 qualified small business stock capital gain exclusion and taxable remainder from holding period and gain.
How It Works
Enter the inputs described in each field label for QSBS Exclusion Calculator. Adjust the inputs above to see how changes affect the projection.
QSBS exclusion may eliminate federal tax on eligible gain subject to caps and holding period rules. Pair with 83(b) Election Savings and Capital Gains Holding Period on portfolios.tools for startup equity tax planning. Numbers update instantly so you can pressure test assumptions quickly.
Pair with 83(b) Election Savings and Capital Gains Holding Period on portfolios.tools for startup equity tax planning.
Bookmark the page for quick reruns without installing software.
Step by step
- Open QSBS Exclusion Calculator and enter your current inputs.
- Review calculated outputs and summary tables.
- Adjust assumptions and compare scenarios side by side.
Worked example
Adjust one input at a time to see sensitivity.
Common mistakes
Confirm tickers, percentages, and dates before acting.
Running a single baseline scenario ignores tail risks.
The Formula
Exclusion = min(Gain, max($10M, 10 × Basis))
Taxable Gain = Gain − Exclusion
Requires five year hold, qualified small business status, and original issuance. State tax treatment varies.
Limitations and assumptions
Requires five year hold, qualified small business status, and original issuance. State tax treatment varies. QSBS Exclusion Calculator does not replace personalized advice.
Key terms
- What does QSBS Exclusion Calculator measure
- QSBS exclusion may eliminate federal tax on eligible gain subject to caps and holding period rules.
- How is the formula applied
- The formula block on this page shows every intermediate step so you can audit the math against textbook definitions.
- Model assumption
- Interpret results in context rather than as automatic buy, sell, or accept signals.
Compare alternatives
Pair with 83(b) Election Savings and Capital Gains Holding Period on portfolios.
FAQ
What does QSBS Exclusion Calculator measure?
QSBS exclusion may eliminate federal tax on eligible gain subject to caps and holding period rules. This calculator runs entirely in your browser on portfolios.tools. The formulas and any bundled reference data are documented below.
How is the formula applied in QSBS Exclusion Calculator?
Requires five year hold, qualified small business status, and original issuance. State tax treatment varies. You can change any input and rerun the calculation as many times as you like. Comparing scenarios side by side is the most reliable way to understand how sensitive the result is to each assumption.
How should I interpret QSBS Exclusion Calculator results?
QSBS exclusion may eliminate federal tax on eligible gain subject to caps and holding period rules. The tool uses standard formulas taught in mainstream finance textbooks. Where applicable, bundled reference data is used. For high stakes decisions, validate the assumptions with a qualified advisor.
What are common input mistakes with QSBS Exclusion Calculator?
Stress test with conservative and optimistic inputs before acting. Document assumptions when sharing outputs with colleagues or clients.
What are the limitations of QSBS Exclusion Calculator?
Requires five year hold, qualified small business status, and original issuance. State tax treatment varies.
Related Tools
Pair with 83(b) Election Savings and Capital Gains Holding Period on portfolios.tools for startup equity tax planning.