---
title: Tips On Qualified Small Business Stock Exclusions
description: By Stephen Josey Law360 Tax Authority July 27, 2022 On May 27, the Internal Revenue…
---

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# [Tips On Qualified Small Business Stock Exclusions](https://kostelanetz.com/publications/tips-on-qualified-small-business-stock-exclusions)

 Written by [Kostelanetz LLP](https://kostelanetz.com/publications/author/kostelanetz-llp) | Jul 28, 2022

By [Stephen Josey](https://kflaw.com/profile/stephen-josey/)  
*Law360 Tax Authority*  
 July 27, 2022

On May 27, the Internal Revenue Service provided much-needed guidance to taxpayers and tax professionals regarding the scope of the qualified trades or businesses requirement for claiming the qualified small business stock, or QSBS, exclusion.

As background, to qualify for the exclusion, a company must meet certain active business requirements in Internal Revenue Code Section 1202(e)(1)(A), which mandate that at least 80% of the value of the corporation’s assets are used in the active conduct of one or more qualified trades or businesses.

This article examines best practices for establishing eligibility for the QSBS exclusion at the time it is claimed so as to best position the taxpayer for any potential future audit

[…]

Click [here](https://www.law360.com/tax-authority/articles/1514935) for the full article.

© 2022 *Law360 Tax Authority*. All rights reserved.  
 Reprinted with permission.

[View full post](https://kostelanetz.com/publications/tips-on-qualified-small-business-stock-exclusions)

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