Selling Stock in a C Corporation? You May Be Able to Avoid Gains Tax.

Selling Stock in C-CorporationBy Kelly A. Berardi, JD
Gray, Gray & Gray, LLP

If you are planning to sell (or have recently sold) stock in a small business C corporation, you may be able to exclude a portion of any gain realized from your taxable income.

Provided the stock was for a “qualified small business,” you may be able to exclude a specified percentage of the gain you realize (IRC Section 1202). Or you may even be able to avoid or defer recognition of the entire gain if you reinvest in another qualified small business stock within 60 days (IRC Section 1045). Continue reading