A taxpayer's initial investment in Section 1202 stock is limited to $1 million.

Name: A taxpayer's initial investment in Section 1202 stock is limited to $1 million.
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Section 1202 of the Internal Revenue Code does not limit a taxpayer's initial investment in qualified small business stock (QSBS); rather, it provides an exclusion for gains on the sale of such stock, with limits on the gain exclusion amount, not on the investment amount.

A Taxpayer's Initial Investment in Section 1202 Stock Is Limited