Where do I find tax documents for my investments?

You can find the tax documents for your investments in your Investor Network Profile (INP) Dashboard.

How can I determine whether my investments are eligible for QSBS treatment?

When a particular Portfolio vehicle makes its exit, Lilypads confirms its QSBS status via the sale of its investments. If Lilypads is satisfied with the confirmation of the QSBS status, we will include the relevant information regarding the exemption or deferment of the gains, in the K-1 that is issued to the investors on an annual basis.

What is Section 1202 (QSBS) or Section 1045?

Qualified Small Business Stock (QSBS) of Section 1202 refers to the shares of a corporation that was a small qualified business when the investment was made. If the shares are held for more than 5 years, the returns gained from the investment becomes non- income taxable.

 

Section 1045 Rollover states that the returns gained from the shares of Qualified Small Businesses that are held for more than 6 months but less than 5 years, can be tax-deferred or entirely tax-free if they are reinvested in a similar small business within 60 days of the exit of the original business.

What are the Forms W-8 or W-9?.

The IRS requires the Forms W-8 and/or W-9 for determining tax withholding. When you submit these forms, Lilypads determines how to withhold distributions and income allocations in terms of your investments.

Do I need to renew the Forms W-8 or W-9?

While a majority of the W-8 forms are valid for 3 years from the end of the year when the form was signed, W-9 forms do not expire. Hence, you will be required to provide an updated version of either of the two forms, if and when they cease to be accurate.



This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.