Taxing the Rich: A Discussion of Qualified Small Business Stock and the Future of Code Sec. 1202
Tax attorneys Emily Risher and Kenneth Parsons authored an article in Taxes—The Tax Magazine providing an in-depth analysis of Internal Revenue Code Section 1202, which provides for the partial or full exclusion of capital gains on the sale of certain qualified small business stock. Many critics of the statute highlight the widespread use of the provision by private equity firms and other highly sophisticated investment entities as a tax avoidance vehicle. Ms. Risher and Mr. Parsons explore this critique and the recent calls for sweeping tax reform which may ultimately affect the future of Code Sec. 1202.