QSBS CALCULATOR

Maximize your QSBS tax savings

Qualified Small Business Stock (QSBS) is a section of the tax code that lets qualifying founders and early investors pay zero federal tax on certain gains.

QSBS tax savings calculator

Get a quick estimate of your potential savings with this powerful tax break. Enter rough numbers, and we'll do the math.

Inputs

• Number of shares
• Purchase date
  • Purchase date should reference: (1) for RSAs or founder stock, the grant date or purchase date (if subject to a vesting schedule, assuming you filed 83(b) election), (2) for options, the exercise date, or (3) for RSUs, the settlement date.
• Purchase price
  • Purchase price should reference: (1) for ISOs, your exercise price, (2) for NSOs, the fair market value (FMV) when you exercised, (3) for RSUs, the FMV on the day your shares settled, or (4) for RSAs or founder stock, the FMV on the day you were granted your shares if you filed an 83(b) election—otherwise it's the vesting date.
• Sale price
  • Estimate based on QSBS rules, a federal tax break for early investors.

Calculation Button

• ClearCalculate savings

Is your stock eligible for QSBS?

Company Requirements

• Incorporated as a U.S. C corporation✅
• Gross assets under $75 million✅
• At least 80% of assets are used in the "active conduct of one or more qualified trade or business"✅
• Not an excluded field (e.g. consulting, sports, law, health, financial services, banking, farming, and hospitality services)✅
• Has not held more than 10% of net assets in stock or securities in other corporations that are or were not wholly owned✅
• Has not held more than 10% of total assets in real property not used in the active conduct of a qualified trade or business✅

Shareholder Requirements

• Shares originally issued from the company✅
• Exercised options or acquired shares while the issuing company was a QSB✅
• Held shares for a minimum of 3-5 years before selling✅

How the calculator works

Our free QSBS calculator assumes the requirements for QSBS were met when the shares were acquired, and uses the following information:

• Number of shares you plan to sell
• Holding period
• Cost basis
• Hypothetical sale price

Expert guidance on QSBS

Carta Equity Advisory is here to assist you in leveraging QSBS benefits and exploring various tax scenarios. Make informed decisions about your equity with our expert guidance.

Learn more