Exclusion of qualified distributions Any qualified distribution from a Small Business Start-up Savings Account shall not be includible in gross income. (B) Inclusion of other distributions Distributions from a Small Business Start-up Savings Account which is not a qualified distribution shall be included in gross income and, for purposes of section 1, treated as a net capital gain. (2) Qualified distribution For purposes of this subsection, the term qualified distribution means, with respect to any taxable year, any payment or distribution from a Small Business Start-up Savings Account— (A) to the extent the amount of such payment or distribution does not exceed the sum of— (i) the aggregate amounts paid or incurred by the taxpayer for such taxable year with respect to a trade or business for the purchase of equipment or facilities, marketing, training, incorporation, and accounting fees, and (ii) the aggregate capital contributions of the taxpayer with respect to a trade or business for the taxable year (but only to the extent such amounts are used in such trade or business for purposes described in clause (i)), and (B) which, in the case of a payment or distribution subsequent to the first payment or distribution from such account (or any predecessor to such account)— (i) is made not later than the close of the 5th taxable year beginning after the date of such first payment or distribution, and (ii) is made with respect to the same trade or business with respect to which such first payment or distribution was made. (3) Treatment after death of account beneficiary If, by reason of the death of the account beneficiary, any person acquires the account beneficiary’s interest in a Small Business Start-up Savings Account— (A) such account shall cease to be a Small Business Start-up Savings Account as of the date of death, and (B) an amount equal to the fair market value of the assets in such account on such date shall be includible— (i) in the case of a person who is not the estate of such beneficiary, in such