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Ignite Insights

Section 1244: The Little-Known Tax Lifeline for Startup Investors

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Ignite Insights
Jul 19, 2025
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Most startup investors are familiar with QSBS (Qualified Small Business Stock) and its generous tax break on big gains and we have written extensively on the topic here and here. Far fewer know about Section 1244 stock loss relief, which can soften the blow of startup failures by turning losses into ordinary deductions. This overlooked provision can be …

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