No, because when you select the option for section 1045, you will be asked about the amount that you reinvested in other qualified small business stock. The better option is to select None of these apply when you are on the page What kind of small business stock did you sell?
Section 1202 was enacted in 1993 to encourage investment in small businesses. It allows individuals to avoid paying taxes on up to 100% of the taxable gain recognized on the sale of qualified small business corporation stock. It is important to consider that there are eight requirements to qualify for Section 1202 benefits. Some of these are determined by the shareholder, while others are determined based on facts and activities of the corporation. For example, one of the eight requirements is that the stock must be held for more than five years before it’s disposed.
Another requirement is that the corporation must be a domestic C corporation. An S corporation is not an eligible corporation, but an LLC that has elected to be taxed as a C corporation is eligible. Additionally, while the corporation must be domiciled in the US, the activity of that corporation or its subsidiaries can be domestic or international.
Follow-up with additional information if you have questions about your qualified small business stock.
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