Qualified Small Business Stock (QSBS) offers an incredible opportunity to exclude up to $10 million in federal capital gains taxes—but getting it right isn’t always easy. At KB Financial Advisors, we simplify the rules, strategies, and decisions so you can focus on what matters: growing your wealth.
Small missteps—like waiting too long to exercise or not holding shares long enough—can cost you millions in unnecessary taxes.
Do your shares qualify? Should you sell now or hold for longer? The answers depend on complex rules that aren’t always clear.
From advanced strategies like stacking and rollovers to navigating state tax rules, the stakes are high without a solid plan.
The QSBS tax break is one of the most generous opportunities out there, but it’s only valuable if you qualify—and getting it wrong can cost you. That’s where we come in. We’ll help confirm that your shares meet the requirements under Section 1202, so you can take full advantage of the tax exclusions. From avoiding pitfalls like selling too soon to ensuring you document your eligibility properly, we’ve got you covered. And if you’re in a state like California, where QSBS doesn’t get the same treatment as federal taxes, we’ll guide you on how to navigate that too.
When it comes to QSBS, timing isn’t just important—it’s everything. We’ll work with you to decide the best time to exercise your options and start the five-year holding period required for the tax exclusion. If you’re looking to accelerate that timeline, we’ll help you explore strategies like early exercises and filing an 83(b) election. Plus, we’ll plan for key moments in your financial life, like a liquidity event or major purchases, so you’re always prepared. With a clear strategy in place, you can feel confident about every decision, knowing it’s part of a bigger picture.
For those with gains that exceed the $10 million QSBS exclusion, we’ll show you how to take it even further. Stacking is one option: by gifting shares to trusts or family members, you can multiply the $10 million exclusion across multiple beneficiaries. Another approach is rolling over your QSBS proceeds into new qualified shares, allowing you to defer taxes and extend the growth potential of your investments. Big gains don’t have to come with equally big tax bills. We’ll help you make smart, strategic moves to keep more of what you’ve earned.
Founders, early employees, and investors all face different challenges with QSBS. We tailor our advice to your specific needs, whether you’re trying to confirm your shares qualify, decide the right time to sell, or plan around a big life event. Our goal is to make sure your QSBS strategy works for you—not the other way around.
QSBS rules can feel overwhelming—holding periods, tax exclusions, state differences—but we simplify it all. We’ll help you determine if your shares qualify, track key deadlines, and avoid common pitfalls like disqualifying your stock or paying unnecessary taxes. You’ll know exactly what steps to take, and when to take them.
With QSBS, small mistakes can lead to big tax bills. We focus on strategies that save you money, like early exercises, gifting shares to trusts, or rolling over gains into new QSBS. Whether you’re navigating a $1 million or $10 million gain, we’ll help you keep as much of your wealth as possible.
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ISOs are a great tool for building wealth, but the tax implications can be complex. We develop a strategy that optimizes the timing of your ISO exercises and sales, so you don’t get caught off guard.
Exercising Non-Qualified Stock Options (NSOs) can feel overwhelming. We’ll help you time it right and avoid costly mistakes so you keep more of your hard-earned money.
Restricted Stock Units (RSUs) are a great perk, but they can come with a big tax bill. We’ll guide you through when to sell and how to minimize taxes, keeping you on track with your financial goals.
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San Francisco, CA 94105