Section 1202, also called the Small Business Stock Gains exclusion, allows for capital gains from select small business stock to be excluded from federal taxes. The exclusion only applies to qualified small business stock acquired after September 27, 2010, and held for five or more years. A limitation of $10 million or 10 times the adjusted basis of the stock. If the limitation is exceeded, the taxable portion of the gain has a tax assessment of 28%. This tax break, made perm