QSBS
Business & Finance abbreviation · Tax
| Stands for | Qualified small business stock |
|---|---|
| Categories | Business & Finance |
QSBS stands for Qualified small business stock, a tax abbreviation.
Stock in a domestic C corporation with gross assets below a set limit when issued that, if held long enough, lets investors exclude a large amount of gain from federal tax under section 1202. The benefit is prized by startup founders and early investors.
Example: Because our shares are QSBS held over five years, most of the exit gain is tax-free.
Usage notes
Legislation in 2025 raised the per-issuer exclusion cap from $10 million to $15 million and added partial exclusions after three and four years for stock issued after July 4, 2025.
Related abbreviations
More tax abbreviations
- PTC – Premium tax credit
- PTET – Pass-through entity tax
- PTIN – Preparer Tax Identification Number
- QBI – Qualified business income
- QCD – Qualified charitable distribution
- QOZ – Qualified Opportunity Zone
- QSS – Qualifying surviving spouse
- QST – Quebec sales tax
- SALT – State and local taxes
- SDI – State disability insurance
- SDLT – Stamp Duty Land Tax
- SECA – Self-Employment Contributions Act tax