As part of the "Small Business Jobs Act of 2010 Tax Provisions, IRS allows Temporary exclusion of 100% of gain on certain small business stock.
Per the IRS, the Small Business Jobs Act provides an additional incentive for investment in qualified small businesses. Under this Act, investors in qualified small business stock can exclude 100% of the capital gain upon sale of the stock. The exclusion under this provision is not an item of tax preference for purposes of the alternative minimum tax.
In order to claim the capital gain exclusion, the qualified small business stock must be:
1. Acquired after September 27, 2010, and before Jan. 1, 2011, and
2. Held for at least five years before the stock is sold.
However, per the IRS, "under current law, the earliest tax year for which this 100% capital gain exclusion can be claimed is 2015."