The Great QSBS Clock Debate

SAFE Investments and the Five-Year Rule

Imagine an investor eagerly tracking their startup portfolio’s growth, counting down to a tax-free windfall. The QSBS clock is ticking — but did it actually start when they thought it did?

Qualified Small Business Stock (QSBS) can be a golden ticket for investors and limited partners (LPs) in venture funds. Under Section 1202 of the U.S. tax code, those …