This module examines the fundamentals of Qualified Small Business Stock (QSBS) under IRC §1202, including eligibility requirements, holding period rules, and the mechanics of the gain exclusion. Participants will engage in group research and discussion to analyze qualification criteria and interpret statutory requirements. Through collaborative exercises, they will compute the allowable QSBS gain exclusion and determine the federal tax consequences of any non-excluded gain. The module emphasizes practical application of §1202 rules to real-world tax scenarios.