Talking about Section 1202 QSBS to the Legislature
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Washington legislators have introduced SB 6229, a bill that directly addresses how Washington’s capital gains tax applies to Section 1202 qualified small business stock (QSBS).
The IRS quietly made an important clarification on January 20, 2026: the updated instructions for Form 1041 (U.
tl;dr: If you employ people in Washington state, there’s a public hearing on January 22 for HB 2100—a proposed 5% payroll tax on wages above $125K.
If you're a founder, investor, or startup advisor eyeing a 2026+ exit, the One Big Beautiful Bill Act (OBBBA) just made QSBS (Qualified Small Business Stock under Section 1202) even more powerful:...
Founders and early investors often assume that if they miss the five‑year QSBS holding period, the Section 1202 exclusion is simply lost.
January is prime time for compliance slip-ups that quietly turn into bigger problems later—loss of good standing, IRS penalties, or unpleasant surprises during fundraising.
This post features a concise infographic explaining the major tax exclusion available under the Qualified Small Business Stock (QSBS) rules.
Washington’s capital-gains tax is no longer speculative: after court challenges, the 7 % tax on long‑term capital gains over $262,500 (2026 threshold; adjusted annually) is firmly in place.
2025 has been a remarkable year for corporate and tax law in the United States.