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🇺🇸 US · US tax

Section 1045 rollover

Also called: 1045 rollover, QSBS rollover

In one line

A US rule letting you defer tax on a QSBS sale by rolling the proceeds into new qualifying small-business stock.

In plain English

If you sell QSBS before meeting the full holding period, Section 1045 can let you defer the gain by reinvesting in other QSBS within a set window — preserving the tax benefit.

If you were explaining it to a 5-year-old

If you sell your special small-shop toy early, you can avoid tax by quickly buying another special small-shop toy with the money.

Why it matters when you sell

A 1045 rollover can protect a big tax break if a sale comes before your QSBS clock is up — valuable to know before selling.

Related terms

Qualified small business stock (QSBS)Holding periodLong-term capital gains83(b) election

Put it to use

QSBS calculator

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Sources

Primary references for this term: IRS (US tax). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.