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If you are going to tax values of the shares then you have to decide _some_ price. What is the alternative? Using the last financing round is just as crazy and
by advisedwang 10y ago
If you are going to tax values of the shares then you have to decide _some_ price. What is the alternative? Using the last financing round is just as crazy and even easier to game.
- lacker 10y agoA simple alternative would be to tax startup shares when they turn into real money, not when they are granted and all sorts of shenanigans are possible around their value.
- briandear 10y agoExactly. The current system is taxing eggs before they hatch into chickens. You're paying taxes on potential income rather than actual income. If the eggs break before they hatch -- too bad. The weird thing is that if a stock loses value, you can't claim a deduction for the loss until that loss is actually realized, yet you can get taxed on shares before any gain is realized. It's all Monopoly money until it becomes actual cash.