Question

Is stock considered QSBS if the business performs electronic design and development services and production?

Forum|Forum|4 years ago
March 14, 2022
1 reply
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Have have been reading that under 1202 for stock to meet QSBS requirements that a technology company is qualified but a engineering services company is not. The company does both engineering services and production of electronic equipment.

TurboTax Online

M

MinhT1

To qualify as a qualified small business stock (QSBS), rhe corporation must be in a business other than one involving personal services; banking, insurance, financing, leasing, or investing; farming; mining; or operating a hotel, motel, or restaurant. Essentially, then, permissible businesses include manufacturing, retailing, technology, and wholesaling.

Engineering services are not personal services and would qualify.

Please this SBA document for more information.

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