Entrepreneurs, ask your tax advisor about the 1202 gain exclusion

Of interest to ETA searchers - a little-known US tax rule allows certain owners of small businesses to exit on a tax-free basis, explains Nathan Faith, a Wealth Partner at Boulay. "Instead of paying, say, $3 million in taxes on a $10 million exit, they pay nothing at all," Faith tells Search Party. If you've held stock in a qualifying C corporation for at least five years, Section 1202 may allow you to exit with up to $15 million in profits completely tax-free — and most accountants either don't know it exists or don't bother to check whether you qualify. Access the full interview about post-exit tax optimization, the full transcript, and a searchable content library on the Search Party Substack. Lead Sponsor: NCL Partners https://www.nclpartners.com/ Sponsors: Boulay https://boulaygroup.com/services/search-funds/ Kilpatrick https://ktslaw.com/ Oberle https://oberle-risk.com/ #searchparty #sme #tax #privateequity #eta

Added 13 Jun 2026