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Six questions to find out whether your stock qualifies under Section 1202, how much gain you can exclude, and what the rest costs. It checks the traps that disqualify shares entirely, not just the holding period. Nothing you type leaves your browser.
Not what it is today. Section 1202 tests the entity at the moment the stock was issued, and that test can never be met retroactively.
This decides your acquisition date, which drives both the holding-period clock and which version of the rules applies to you.
Both of these are measured at acquisition. A company can be worth billions later and the stock still qualifies, but if it was already over the ceiling when you acquired, it never will.
Two things can disqualify stock that was perfectly good on day one. Most people cannot answer these from memory, which is the point of asking — a clean-looking number built on an unexamined fact is worse than no number.
Basis is what you paid. If you converted from an LLC, use the fair market value at conversion instead — Section 1202(i) gives you FMV basis, which can make the 10× cap far larger.
What this assumes. Federal figures are the 2026 amounts in Rev. Proc. 2025-32. The calculation puts you in the top capital gains bracket, treats the active-business test as met throughout, and models a single taxpayer — no gifting, trusts or stacking. State tax is shown only for the four states that do not conform to section 1202. Parikh Financial does not provide attest services and is not a registered investment adviser.
Most QSBS tools ask how long you held the stock and stop there. Four of the six questions above are about whether the shares were ever eligible in the first place, which is where real claims actually fail.
This calculator is provided for informational purposes only by Parikh Financial. Parikh Financial does not provide legal, investment, or tax advice, and this calculator is not a substitute for professional advice or services, nor should it be used as the basis for any decision or action that may affect your finances or your business. Use of this calculator is entirely at your own risk, and Parikh Financial assumes no liability for its use or for any reliance on its output. Parikh Financial does not guarantee the calculator’s accuracy or its applicability to your particular circumstances. It is provided “as is”, without warranty of any kind, whether express, implied, or statutory, including without limitation any warranty of merchantability, fitness for a particular purpose, title, or non-infringement. Some jurisdictions do not allow the exclusion of implied warranties, so these exclusions may not apply to you. Tax law changes frequently and figures shown reflect published federal amounts as of the date of this page.
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