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§1202 QSBS Basis Packing

Pack basis into C-Corp pre-clock; exclude $10M or 10× basis.

Overview

Contribute maximum cash/property to your C-Corp before the 5-year §1202 clock starts. Exclusion is greater of $10M or 10× aggregate basis — so $2M basis unlocks $20M tax-free exit. Combine with gifting shares to non-grantor trusts in different states to 'stack' multiple $10M exclusions.

Best fit
Founders pre-fundingC-Corp equity holdersPre-exit planning
Estimated impact
$2M–$20M+ federal tax elimination on exit

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