Simply Tax Episode 26 – Is Section 1202 for You?

Presenters/Authors
American Flag in front of building

Part of the TCJA Series

SUBSCRIBE:  iTunes  |  Android  |  RSS

When certain requirements are met, IRC Section 1202 provides a meaningful exclusion for the gains made on certain small business stock. Our Tax Cuts and Jobs Act (TCJA) series concludes as guest Rick Klahsen breaks down the exclusion with host Damien Martin and discusses what it means after tax reform. Here’s what they cover:

  • What’s Section 1202? @ 1:44
  • Why are there areas of uncertainty? @ 5:40
  • What’s a qualified small business for Section 1202 purposes? @ 9:53
  • How can you determine if a company meets the $50 million asset threshold? @ 11:25
  • Can the gain exclusion ever exceed $10 million? @ 13:48
  • Why is Section 1202 more complex than it appears? @ 14:54
  • What are some common areas of misunderstanding? @ 19:08
  • Why there’s been so much discussion around choice of entity after tax reform and how Section 1202 might increase interest in this discussion @ 21:38
  • What has factored into the historic popularity of Section 1202? @ 27:44
  • Has there been more interest in Section 1202 after tax reform? @ 30:58
  • Is Section 1202 for you? @ 33:55

BIO FOR GUEST
Rick Klahsen has more than 25 years of experience advising clients in various industries, including several investor-owned public utilities, food manufacturers and distributors, automobile original equipment manufacturers and telecommunications service providers. He also has significant experience with federal tax due diligence and matters related to structuring transactions. He serves as regional tax director of BKD’s South Region and tax director of BKD’s Dallas-Waco practice unit.

Connect with Rick on LinkedIn


Thumbnail

How can we help you?