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They would fail the QSBS test. The firms can’t be holding cos, they have to actively deploy capital (and can’t be a whole host of things, eg consulting)
I’d be interested if a couple of smart folks could find a loophole or if it’s airtight.
I’m sure they might. But if they productize that as you suggest, I’d imagine that would quickly bring it the eyes of the IRS :-)
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