I’m an employee of a start-up corporation. Are my shares eligible for Qualified Small Business Stock (QSBS) benefits?

Employees’ shares may be eligible for QSBS treatment in certain circumstances.  But it is important to note that only shares are eligible for QSBS tax treatment; unexercised options cannot receive QSBS treatment.  Shares issued upon exercise of options, or outright share issuances, with appropriate section 83(b) elections, may receive such treatment if applicable requirements are otherwise met (summaries of such requirements here).

Learn More:

• Qualified Small Business Stock 
• Capital Gains

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