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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@DMarkM1 Your reply was so helpful, I'm hoping you might have an idea of what I'm doing wrong with the QSBS stock.
The QSBS stock was sold in multiple lots (all for the same company) within 2019 but turbotax is excluding all of it from federal tax, i.e., it does not seem to recognize that gains over the limits you describe should not be excluded from tax.
Do you have any suggestions on how to limit the exclusion in TurboTax?
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