Start Up Investor Tax Outcomes Tables
US Start-Up Stock or SAFE Note
US Residents US Non-residents
Types of income Conditions Tax outcomes Tax outcomes
Gains on sale
Short term Held for one year or less Up to 40.8% No income/tax
Long term Held for one year and one day 0/15/18.8/23.8% No income/tax
QSBS 1202 Held for five years and one day No Federal Level tax No income/tax
on up to $10mil income
or 10x basis per issuer per investor
Rollover stock 1045 Held for six months and No Federal Level Tax if No income/tax
one day proceeds reinvested to
another US corporation within 60 days
Losses on sale
Long/short term The term depends on the Loss is realized No Deduction/credit
holding period- at or under security id sold
one year, or over or becomes worthless
Ordinary loss 1244 If invested within the Up to $50/$100k per No Deduction/credit
First $ 1 mil year per investor
Dividends
Qualified Held for 60+1 days 0/15/188/23.8% N/A
Non qualified Held for 60days or less Up to 40.8% N/A
Treaty unavailable Investors is not a resident of a Not applicable 30%
treaty country
Treaty available Investor is a resident of a Not applicable Treaty rate from zero to treaty country, the entity is an 25%
LP, or if the entity is a USLLC,
then income inclusion in the
home country is necessary