Gain (up to $10 million) on the sale of qualified small business stock (QSBS) held more than 5 years is 100% excludable. To be QBST, a C corporation must meet certain criteria, one of which is NOT being in a trade or business where the principal asset is the reputation or skill of one or more of its employees. The IRS ruled privately that a cloud application services software company didn’t have this principal asset and, therefore, was a corporation that could have QSBS. While employees possessed technical skills and knowledge, the company could recruit and train new employees to perform substantially identical services. #IdeaoftheDay