Avoid Millions in Taxes? The Hidden Power of QSBS (Qualified Small Business Stock)
I wanted to know more about QSBS.
So I found someone who’s lived it.
Kevin McGee isn’t just an attorney—he’s also a business buyer who acquired a craft brewing company and used QSBS to potentially avoid millions in capital gains tax.
Who better to break it down?
We recorded a deep-dive conversation on the Qualified Small Business Stock (QSBS) program—how it works, how to qualify, the recent legislative changes, and what every buyer or investor should know before they structure a deal.
Here are a few key takeaways:
âś… QSBS can allow for 100% exclusion of capital gains tax—if the C-Corp and the deal are structured right.
âś… The new “Big Beautiful Bill” (2025) raises the QSBS cap to $15M and lets you start qualifying after just 3 years.
âś… Compliance is everything. Screw it up—and you lose the benefit.
âś… You can’t buy QSBS stock on the open market. It must be original issuance from a qualifying C-Corp.
âś… You can set up a C-Corp, raise capital into it, and acquire an operating business—while still preserving QSBS.
This isn’t theory.
Kevin did it. And now he advises others how to do it properly—with legal compliance and an eye on the long-term tax advantages.
We also talked about:
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Asset vs. stock sales and how that affects QSBS eligibility
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What business buyers often miss when trying to use QSBS
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The future of the program and why investors are paying close attention
Whether you're a business buyer, founder, investor, or LP—if you’re not looking at QSBS as part of your strategy, you might be leaving a lot of money on the table.