I have always thought that the statutory requirements were overly restrictive considering the purpose of the exemption. QSB Stock is defined in Section 1202(c) and does not include equity other than stock acquired at original issuance. Subsection (h) allows certain stock acquired in tax free exchanges to be included and there is an allowance for investment in Specialized Small Business Investment Companies. I will check the regulations to see if there are any other alternatives.
The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.