*This article was updated in July 2025 to reflect the changes to Section 1202 under the One Big Beautiful Bill Act.  Sections 1202 and 1045 were enacted by Congress to encourage investment in early-stage businesses operated as domestic (US) C corporations.  Section 1202 permits a taxpayer to claim an exclusion from capital gains in connection … Continue reading A Section 1202 Walkthrough: The Qualified Small Business Stock Gain Exclusion