The only limits to the exclusion of gain (IRC §1202) according to Taxbook 2019. .
A taxpayer can elect to exclude from gross income gain from the sale or exchange of QSB stock held more than five years.
The gain from stock of any one issuer that is eligible for the exclusion is limited to the greater of the following amounts
• 10 times the taxpayer’s basis in all qualified stock of the issuer sold or exchanged during the year.
• $10 million ($5 million for MFS) minus the gain from the stock of the same issuer used to compute the exclusion in earlier years.
The exclusion varies based on date of stock purchase.
Exclusion of Gain Percentages
Stock Acquired After… And Before… Percent of Gain Excluded Qualified Small Business Stock Qualified Empowerment Zone Business Stock
8/10/1993 2/18/2009 50% 60%
2/17/2009 9/28/2010 75% 75%
9/27/2010 No deadline 100% 100%
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