[startupcfo]

Section 1202 mentions special tax treatment for a Qualified Small Business Corporation.

How do I know what qualifies as a QSBC? The number of employees? That shareholder concentration? The year in which the business opened?

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[jm962011]

Are you asking related to a MCQ for a section of the exam or for actual tax purposes?

Since you know the code number, I think you just need to read further, specifically Section 1202 (d)…. but don't just stop there cause Section 1202 (e) tells you how to calculate the “aggregate gross assets” that are mentioned in 1202(d)(1)(A)….

(d) Qualified small business For purposes of this section—
(1) In general The term “qualified small business” means any domestic corporation which is a C corporation if—
(A) the aggregate gross assets of such corporation (or any predecessor thereof) at all times on or after the date of the enactment of the Revenue Reconciliation Act of 1993 and before the issuance did not exceed $50,000,000,

(B) the aggregate gross assets of such corporation immediately after the issuance (determined by taking into account amounts received in the issuance) do not exceed $50,000,000, and

(C) such corporation agrees to submit such reports to the Secretary and to shareholders as the Secretary may require to carry out the purposes of this section.

[Author]

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