If you held an interest in a pass-through entity, such as a partnership, an S corporation, a mutual fund, or other regulated investment company that sold QSB stock, you would qualify for the exclusion if you held the interest on the date the pass-through entity acquired the QSB stock and at all times thereafter until the stock was sold.
A distributed capital gain, from a mutual fund for example, would be reported on Form 1099-DIV. Part or all of the gain reported in box 2e of Form 1099-DIV may be eligible for the Section 1202 exclusion.
An undistributed capital gain would be reported on Form 2439. Part or all of the gain reported in box 1e of Form 2439 may be eligible for the Section 1202 exclusion.