QSBS Section 1202 ($10M or 10× Basis) Capital Gains Tax Exclusion Calculator

Compute Section 1202 QSBS tax-exempt gain cap ($10M vs. 10× basis) and federal tax saved.

Section 1202 QSBS Tax-Free Excluded Gain
15,000,000 USD
Federal Capital Gains Tax Saved 3,570,000 USD
Applicable QSBS Exclusion Ceiling 15,000,000 USD
Remaining Taxable Gain Above Cap 1,500,000 USD
Inputs
⚡ Scenarios:
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
currency
Original cash or property basis paid for the C-Corp QSBS shares.
currency
Total sale proceeds after holding ≥5 years.
%
Federal Long-Term Capital Gains (20%) + NIIT (3.8%) tax rate.
Results & Graph
Section 1202 QSBS Tax-Free Excluded Gain
15,000,000 USD
Federal Capital Gains Tax Saved
3,570,000 USD
Applicable QSBS Exclusion Ceiling
15,000,000 USD
Remaining Taxable Gain Above Cap
1,500,000 USD

Section 1202 QSBS Tax-Free Excluded Gain

Graph 1 • QSBS Section 1202 Exclusion • Domain Architecture & Live Telemetry Maps Initial Stock Cost Basis, Gross Exit Proceeds, Combined Ltcg And Niit Rate Pct through QSBS Section 1202 Exclusion Formula.
EQUITY COMPENSATION & TAX Section 1202 QSBS Tax-Free 15,000,000 USD Federal Capital Gains Tax 3,570,000 USD QSBS Section 1202 Exclusion • Component Waterfall Section 1202 QSBS Tax-Free Exc 15,000,000 USD Federal Capital Gains Tax Save 3,570,000 USD Applicable QSBS Exclusion Ceil 15,000,000 USD Remaining Taxable Gain Above C 1,500,000 USD
Graph 2 • Section 1202 QSBS Tax-Free Excluded Gain Across Initial Stock Cost Basis Sweep (40% → 160%) Evaluates MaxExclusionCap = max(10,000,000, 10 × InitialCostBasis); TaxableGain across 7 operating points (current input highlighted).
0 USD 8.91M USD 17.82M USD 10.00M 600.0k 10.00M 900.0k 12.00M 1.20M 15.00M 1.50M 16.20M 1.80M 15.90M 2.10M 15.60M 2.40M
Graph 3 • Joint Sensitivity: Initial Stock Cost Basis × Gross Exit Proceeds Compares Section 1202 QSBS Tax-Free Excluded Gain when Gross Exit Proceeds is shifted +25% (solid) vs. −25% (dashed).
0 USD 10.72M USD 21.45M USD --- Gross Exit Proceeds @ 75% 10.50M -30% 12.75M -15% 15.00M +0% 17.25M +15% 19.50M +30%
Summary: With a USD 1,500,000.00 basis, the Section 1202 cap is USD 15,000,000.00 (max of USD 10,000,000.00 or 10× basis), excluding USD 15,000,000.00 of gain and saving USD 3,570,000.00 in federal tax.
Summary: With a USD 1,500,000.00 basis, the Section 1202 cap is USD 15,000,000.00 (max of USD 10,000,000.00 or 10× basis), excluding USD 15,000,000.00 of gain and saving USD 3,570,000.00 in federal tax.
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Interactive chart & math engine powered by CalculatorGraph

Formula & Mathematical Methodology: QSBS Section 1202 Exclusion Formula

MaxExclusionCap = max(10,000,000, 10 × InitialCostBasis)
TaxableGain = max(0, TotalRealizedGain − MaxExclusionCap)
MaxExclusionCap = max(10,000,000, 10 × InitialCostBasis); TaxableGain = max(0, TotalRealizedGain − MaxExclusionCap)
  • initialStockCostBasis: Initial Stock Cost Basis (currency)
  • grossExitProceeds: Gross Exit Proceeds (currency)
  • combinedLtcgAndNiitRatePct: Combined Ltcg And Niit Rate Pct (%)

Rounding: Currency outputs round to 2 decimal places; effective rates and multiples display to 2 decimal places.

Worked Example: Benchmark Scenario: QSBS Section 1202 Exclusion

Compute Section 1202 QSBS tax-exempt gain cap ($10M vs. 10× basis) and federal tax saved.

  1. Enter your financial, equity compensation, or tax parameters.
  2. Evaluate the governing equation: MaxExclusionCap = max(10,000,000, 10 × InitialCostBasis); TaxableGain = max(0, TotalRealizedGain − MaxExclusionCap).
  3. Review the primary result, supporting metrics, and 3 interactive SVG charts.
Result: Computes QSBS Section 1202 Exclusion via MaxExclusionCap = max(10,000,000, 10 × InitialCostBasis); TaxableGain = max(0, TotalRealizedGain − MaxExclusionCap).

Frequently Asked Questions

How does the QSBS Section 1202 ($10M or 10× Basis) Capital Gains Tax Exclusion Calculator calculate results?

It evaluates MaxExclusionCap = max(10,000,000, 10 × InitialCostBasis); TaxableGain = max(0, TotalRealizedGain − MaxExclusionCap) directly in your browser and updates three custom SVG visualizations in real time.

Can I use Goal Seek to solve backwards for a target amount?

Yes. Click "🎯 Goal Seek" in the results toolbar to solve backwards for any numeric input parameter.

Are my financial and compensation numbers kept private?

Yes. All calculations execute 100% locally in your browser with zero server transmission.

Finance & Investing · Equity Compensation & Tax

QSBS Section 1202 ($10M or 10× Basis) Capital Gains Tax Exclusion Calculator: inputs, method, and how to read the result

Compute Section 1202 QSBS tax-exempt gain cap ($10M vs. 10× basis) and federal tax saved.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Initial Stock Cost Basis: Original cash or property basis paid for the C-Corp QSBS shares.
  • Gross Exit Proceeds: Total sale proceeds after holding ≥5 years.
  • Combined Ltcg And Niit Rate Pct: Federal Long-Term Capital Gains (20%) + NIIT (3.8%) tax rate.

What the calculation includes

With the default values shown, Section 1202 QSBS Tax-Free Excluded Gain is 15,000,000 USD. The calculation follows QSBS Section 1202 Exclusion Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Initial Stock Cost Basis from 1,500,000 currency to 1,650,000 currency changes Section 1202 QSBS Tax-Free Excluded Gain from 15,000,000 USD to 16,350,000 USD. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses published statutory rules, standard compounding conventions, and marginal tax rates entered by the user.
  • For educational and financial planning analysis; consult a CPA or qualified advisor for personalized tax filings.

Scope: Global / US / India / UK / Canada / Australia Statutory Standards Check the assumptions and limitations against your situation before relying on the estimate.

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