QSBS Section 1202 Capital Gains Tax Exclusion Calculator
Calculate federal tax savings on Qualified Small Business Stock (QSBS) under IRC § 1202: evaluate 100% / 75% / 50% acquisition tiers, $10M cap vs 10x basis, and NIIT savings.
Stock Sale & Acquisition Criteria
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Determines the 10x basis multiplier cap.
Corporate & Taxpayer Status
IRC § 1202 Tax Savings
100% QUALIFIED QSBS
Estimated Federal Tax Savings
$2,380,000
7.93% effective tax rate
Excluded Gain Amount
$10,000,000
$10M statutory cap applied
Taxable Capital Gain
$5,000,000
Subject to regular 23.8% LTCG
Net Investment Income Tax (NIIT)
-$380,000
3.8% surtax exempt on excluded gain
Tax Comparison Summary
Standard Federal Tax (23.8% LTCG + NIIT):
$3,570,000.00
Actual Federal Tax with § 1202:
$1,190,000.00
10x Basis Limit ($500k basis × 10):
$5,000,000.00
Winning Exclusion Ceiling:
$10,000,000.00 ($10M Cap)
Statutory Cap Rules (§ 1202(b))
IRS Code
Eligible gain is limited to the greater of $10,000,000 ($5M for MFS) or 10 times the aggregate adjusted basis of the QSBS issued. For stock acquired after Sept 27, 2010, 100% of excludable gain is tax-free and completely exempt from both the 3.8% Net Investment Income Tax and Alternative Minimum Tax (AMT) preference items.