Episode

Enrolled Agent Exam [Part 2] 22, Section 1202 Qualified Small Business Stock

Podcast
Finance Exam Prep
Published
May 19, 2026
Duration seconds
209
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https://open-exam-prep.com/
Audio
https://episodes.captivate.fm/episode/7daf1e0c-d777-42ad-a848-d1801601d82b.mp3
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/v1/public/podcasts/finance-exam-prep-7658413/episodes/enrolled-agent-exam-part-2-22-section-1202-qualified-small-business-stock
Markdown
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Summary

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The five critical requirements for stock to qualify as QSBS: C-Corp, original issuance, under $50M in assets, active business, and a 5-year holding period. - How to calculate the maximum gain exclusion, which is limited to the greater of $10 million or 10 times the stock's basis. - Common exam traps such as S-Corp stock, secondary market purchases, and significant stock redemptions. - Which types of businesses, like specific professional services, are excluded under the 'active business' requirement. - How the stock's acquisition date determines the gain exclusion percentage, which can be 50%, 75%, or 100%.