Insurance broker a qualified small business for stock gain exclusion?

Gain on the sale of qualified small business stock in a C corporation held more than 5 years may be fully excludable from gross income (or 50% or 75%, depending on when the stock was acquired). Typically, this break applies to companies in technology, manufacturing, wholesale, and retail. Certain types of businesses are specifically not qualified small businesses for this purpose, including those providing brokerage services. However, the IRS ruled privately that an insurance agent or broker may be a qualified business because it is not a mere intermediary; it performs administrative services to facilitate transactions (e.g., reporting incidents to insurance companies; keeping records of all transactions). #IdeaoftheDay