Other People's Money
Back to library
Tax

§1045 QSBS Rollover

Sell QSBS before 5 years — roll gain into new QSBS.

Overview

If you sell QSBS stock before the 5-year holding period, §1045 lets you defer the gain by rolling proceeds into new QSBS within 60 days. Preserves the exclusion clock (tacks holding period). Ideal when a portfolio company sells early and you want to redeploy into another qualifying startup without losing §1202 benefits.

Best fit
Angel investorsFounders with early exitsQSBS portfolio holders
Estimated impact
Defer 20–37% cap gains + preserve §1202 exclusion

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

More tax strategies

See all Tax strategies
OPM