Review the availability and application of three special rules that allow exclusion or deferral of gain from the sale of the stock of a corporation not making the S corporation election. IRC 1202 provides that all or part of the gain from the sale of "qualified small business stock" can be excluded from gross income. IRC 1045 describes situations when the gain from the sale of "qualified small business stock" can be deferred. To understand the application of these two favorable provisions, the meaning of "qualified small business stock" must be understood, as well as other requirements and limitations. IRC 1042 allows deferral of gain from the sale of corporate stock to an employee ownership plan ( ESOP). This deferral requires a qualified reinvestment at the right time in an adequate amount. Study how these three provisions apply in the context of tax planning for corporate businesses.