Secondary transactions are sales of stock in a privately held corporation to a venture capital (VC) company. Qualified small business stock (QSBS) is stock meeting certain conditions (e.g., only C corporations that are not in certain industries) for which gain can be fully excluded from income up to $10 million. Put the two together and owners of QSBS can do well. According to one source, 2024 may be a stellar year for VC secondaries. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
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