IRS IRC §1202 (Sale of a Qualified Business under QSBS)

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• True or False? Each business owner does not pay any tax on their first $10 million of sales proceeds in a business sale. True, if you use §1202, it does not matter if it is an asset or a stock sale.​
  
• True or False? Investors and business buyers do not pay any capital gains taxes until their return on a sale or investment exceeds 1,000% (10X) of their original investment. Also True using §1202.
  

In order for a Buyer or Investor to acquire §1202 status, the original sale had to be a stock sale & 5 years must pass from the date of that stock purchase to become QSBS  §1202 eligible.

For example, A private equity firm bought/invested in a company for $20 million, and over the next 6 years, the value of their shares increase in that company to $220 million. Using  §1202, they would pay NO taxes on a sale. Taxes would only begin to be calculated after the first $220 million of sales proceeds.