Must my investment be in the U.S. to qualify for the QSBS gain exemption?

Yes, to qualify for the Qualified Small Business Stock (QSBS) exemption under Section 1202 of the Internal Revenue Code, your investment must be in a domestic C Corporation. The corporation must be organized in the United States and meet other QSBS requirements.

Following up on a previous post on QSBS this is an overlooked requirement.

If you invest in a foreign corporation, even if it operates a qualified trade or business, that stock would not be eligible for the QSBS tax benefits.

Let us know if you have any questions