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Lane- I sent you question to the QSBS question from a couple…

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Hi Lane- I sent...
Hi Lane- I sent you a follow up question to the QSBS question from a couple of weeks ago. Thx
Submitted: 1 month ago.Category: Tax
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Answered in 2 hours by:
1/8/2018
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 month ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,506
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi Michael ... I try to clarify here ... First. it's important to understand that the answers themselves don't qualify OR disqualify based on a yes or a no answer.

....

The Answers allow someone familiar with the law to make a distinction STARTING WITH the answer to the question.

...

Number 5 is an example - the default rule, the starting point, is that a "No" answer to number 5 disqualifies the company. HOWEVER, there are a couple of exceptions; (1) the di minimis rule, where stock redemption up to 10 ,000 and 2% of the stock held by the stockholder in question are allowed/

...

And (2) the redemption can be COMPLETELY disregarded if the redemption was done for the termination of services provided by the shareholder, OR, if the stock was redeemed because of death, disability, mental capacity or divorce....A yes answer in 6 (assuming they met (1) the active business requirement, and (2) one of the exceptions in above) is a good thing - meaning that they didn't redeem under the 5% of total value rule... becasue OF the 2% exception
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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
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Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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