What is the tax treatment for qualified small business stock acquired in 2019 and held for more than five years, and what is the tax treatment if it is held for less than five years?
What will be an ideal response?
Qualified business stock is considered a capital asset. Thus, preferential treatment is provided under certain circumstances. If stock acquired in 2019 is held by an investor for more than five years, 100 percent of the gain will be excluded from income. If the stock has been held by an investor for less than five years, the entire gain is taxed at a maximum 0/15/20 percent rate if held for more than one year and at the taxpayers' marginal tax rate if held for one year or less.
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