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Assume I am taking the proceeds from the sale of QSBS (1202) and investing that within 60 days in another company that qualifies as QSBS.

According to this document, all I have to do is claim the purchase as a loss on my next tax return. I just want to verify there's nothing in this like an 83b election which has to have a separate filing within a small amount of time after the event.

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When you get into reading Revenue Rulings and Treasury Regulations - I'd suggest hiring a professional to do that for you. Especially since you also need to assure that the new stock does indeed qualify as QSBS. However, from the revenue ruling you quoted it doesn't sound like there's any other requirement other than reporting the subsequent purchase as a loss on your schedule D. I wouldn't know, however, if there are subsequent/superseding revenue rulings on the matter since 1998. Professional tax adviser (EA/CPA licensed in your State) would have the means and the ability to research this and give you a proper advice.

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  • Thanks for the answer. I've been given bad advice before, so I always make a point of looking into the issues myself. – Jeremy T May 21 '14 at 15:42

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