What are the tax implications of receiving equity through Coin-to-Company?

Equity issued through Coin-to-Company may provide U.S. tax advantages depending on the shareholder's circumstances and the structure of the issuing company. Shares may be eligible for exclusion of federal capital gains under Internal Revenue Code Section 1202 (Qualified Small Business Stock), subject to satisfaction of issuer-level, shareholder-level, holding-period, active-business, redemption, and gain-limitation requirements.

The potential exclusion is 50% after three years, 75% after four years, and 100% after five years, subject to a per-issuer limitation of the greater of $15 million of eligible gain or ten times qualifying basis. Tax treatment is highly fact-specific and jurisdiction-dependent. State tax treatment varies and may differ from federal treatment. Consult a qualified tax advisor to understand the tax consequences applicable to your situation before participating.