For federal tax purposes Internal Revenue Code ("IRC") § 1202 allows individuals an income exclusion for gains derived from the sale of qualified small business stock ("QSBS"). Because Massachusetts generally follows the IRC as in effect in 2005 for personal income tax purposes, Massachusetts allows an income exclusion for 50% of such gains.
Origin: IRC § 1202
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2019
FY2020
FY2021
FY2022
FY2023
Personal Income Tax
Exclusions from Gross Income
1.042
Exclusion of Gains of Qualified Small Business Stock (QSBS) Gain
For federal tax purposes Internal Revenue Code <a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00001202----000-.html" target="_blank">("IRC") § 1202</a> allows individuals an income exclusion for gains derived from the sale of qualified small business stock ("QSBS"). Because Massachusetts generally follows the IRC as in effect in 2005 for personal income tax purposes, Massachusetts allows an income exclusion for 50% of such gains.
<a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00001202----000-.html" target="_blank">IRC § 1202</a>
22.9
24.2
35.6
33.2
32.6
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