All glossary terms
Glossary term
Section 1202 Stock
Stock potentially qualifying for the QSBS gain exclusion under Section 1202.
Related terms
2
Jurisdictions
us
Definition
Section 1202 stock must be issued by a domestic C corporation engaged in an active business with gross assets under $50 million when the stock was issued. Holding period must exceed five years for the exclusion to apply.
Examples
- Founders of a domestic startup C-corp with under $50M assets at funding may have QSBS-eligible Section 1202 stock.
Related terms
Translations
ESAcciones Sección 1202
ZH1202条股票
DESection-1202-Aktien
FRActions Section 1202
JASection 1202株式
Citations
26 U.S.C. · 1202
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- TermQualified Small Business Stock (QSBS)
- TermC Corporation
- StatuteIRC §1202
Primary sources
- IRS: Section 1202Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.