Sources & methodology
1202 Request's rule scaffolding is built from public educational sources and the Internal Revenue Code. It is not legal, tax, accounting, or investment advice.
Methodology, not advice
We translate Section 1202 concepts into a checklist of common evidence requirements. Output statuses (consistent / missing / red flag / not applicable) are derived from the user's own answers and entered documentation. The product never determines QSBS eligibility, never recommends a transaction, and never replaces a CPA or tax attorney. The readiness score reflects evidence completeness only.
Reference links
- 26 U.S. Code § 1202 (Legal Information Institute)
Primary statutory text.
https://www.law.cornell.edu/uscode/text/26/1202 - Carta — QSBS guide
Industry educational guide.
https://carta.com/sg/en/learn/startups/tax-planning/qsbs/ - Carta — QSBS calculator overview
Reference tool — different scope from this product.
https://carta.com/learn/resources/qsbs-calculator/ - Plante Moran — Section 1202 documentation challenge
On the importance of proactive evidence.
https://www.plantemoran.com/explore-our-thinking/insight/2023/07/section-1202-proactively-protect-your-qsbs-exemption - SEC Investor.gov — Investment adviser definition
Why this product is not an investment adviser.
https://www.investor.gov/introduction-investing/investing-basics/glossary/investment-adviser - Cake Equity — QSBS feature
Issuer-side product example.
https://www.cakeequity.com/features/qsbs
2025 boundary note
The applicable gross-asset threshold and benefit cap differ for stock issued on or before vs. after July 4, 2025. The rule engine is date-aware and surfaces this; verify all thresholds with your tax advisor.