Free · Instant results

Is your stock eligible for QSBS?

Our free Section 1202 eligibility questionnaire helps founders, investors, and small business owners determine whether their stockholding is likely to qualify for the federal capital gains exclusion — in minutes.

Start the free questionnaire

Takes 3–5 minutes. Results are for preliminary self-assessment purposes only.

$15M
Maximum federal exclusion per stockholder (post-July 2025)
8
Eligibility questions covering every key Section 1202 requirement
0
Cost — always free, no account required
How it works

Three steps to your preliminary QSBS assessment

The questionnaire walks through every key Section 1202 requirement and generates a personalized summary you can keep for your records.

1
Answer 8 questions
Entity type, industry, business operations, gross assets, issuance date, original issuance, holder type, and planned holding period. Each question explains what it means and why it matters.
2
Get your assessment
Receive an instant preliminary assessment — likely eligible, or issues identified with specific notes on each flagged answer. The result screen summarizes every response.
3
Download your summary
Download a PDF summary of your responses and results. Keep it as part of your QSBS recordkeeping. Update it periodically to identify any new trouble spots.
Who this is for

Built for founders, investors, and small business owners

QSBS is not just for Silicon Valley startups. Any domestic C corporation under $75M in gross assets operating in a qualifying business can issue QSBS.

Founders
Check eligibility at or after formation — before the window closes
Small Business Owners
Many qualifying businesses don't realize they're eligible
Angel Investors
Verify eligibility before you invest — or after issuance
Employees
Options and restricted stock may qualify — timing matters
Advisors
Run a quick check for clients before the issuance window closes
What we check

Every Section 1202 eligibility requirement — covered

The questionnaire addresses all eight statutory requirements, with plain-English explanations at each step.

Company structure — Is the issuer a domestic C corporation? LLC and S corp conversion paths explained.
Business type — Qualifying vs. non-qualifying industries side by side. Excluded categories clearly listed.
Active business requirement — The 80% active asset test, including the cash holding rules and subsidiary treatment.
Gross asset threshold — $75M limit (post-July 2025) or $50M (pre-July 2025) at time of issuance.
Issuance date — Pre- vs. post-July 4, 2025 rules. Resources page link for full comparison.
Original issuance — Stock must be acquired directly from the company at first issuance.
Holder type — QSBS benefits are only available to non-corporate taxpayers.
Holding period — 3-year minimum for any exclusion. 100% exclusion at 5+ years (post-July 2025).
Important: This tool provides a preliminary self-assessment only — not a formal attestation or legal/tax advice. A formal analysis of the specific facts and circumstances is required before any conclusion can be reached. The burden of proof rests with the taxpayer. See JU v. United States (2024) and Holmes v. Commissioner (2012) for how courts treat undocumented QSBS claims.
Ready to check your eligibility?

Free, instant, and no account required. Takes 3–5 minutes. Keep a copy of your results as part of your QSBS recordkeeping.

Start the free questionnaire