1202(a)(1) excludes 50% of any gain from the sale or exchange of QSB stock held for more than five years.
1202-1(a), the tax rate on the nonexcluded gain on a QSB stock sale is 28%.
Example 1: Individual N acquired QSB stock on July 1, 2003, for $100,000.
1202(a)(1) excludes from gross income 50% of the gain recognized on the sale or exchange of QSB stock issued after Aug.
The effect of this AMT preference is that most taxpayers who sell QSB stock and elect Sec.
1045, which allows certain taxpayers to elect to roll over gain from the sale of QSB stock sold after Aug.
1045(b)(5) provides that, for QSB stock held through passthrough entities, rules similar to the rules of Sec.
31, 1998, or the due date (including extentions) for filing the income tax return for the tax year in which the QSB stock is sold.
351 exchange) with the objective of the C corporation qualifying as a QSB appears unavailable.
However, it would appear possible to recapitalize an existing corporation so that all future appreciation accrues to QSB stock.
An important addition to our existing FIX-based trading platform, QSB helps further this commitment through tools and services that allow us to create our own customized and private-labeled agency algorithmic offering.
QSB is EdgeTrade's umbrella of algorithmic and DMA offerings designed to support institutional broker-dealers with technology resources to address a variety of needs, including: improving their existing algorithmic trading desk performance with the addition of EdgeTrade's agency-based strategies; approaching the algorithmic trading space as a new entrant with advanced strategies and anonymous execution services; offering a private-label, completely confidential algorithmic offering to their buy-side clients; and growing and diversifying their menu of electronic trading services to include, for example, automation of corporate buyback orders by private-labeling EdgeTrade's 10b-18 algorithm.