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> US$125 million of Theranos stock for US$1 I thought it was a click-bait title, but after reading the story, I am a little confused. Why would he take a $125
by justboxing 10y ago
> US$125 million of Theranos stock for US$1
I thought it was a click-bait title, but after reading the story, I am a little confused.
Why would he take a $125 ( minus 1 $) loss? Tax credits? Or was / is the stock worthless and the $125 mil is what he originally paid for, or accrued in value?
- tedunangst 10y agoYou can't realize the loss until you actually sell it. If you're about to realize 100 million in profits, it's better to offset that with a loss now than dragging it out over the next decade.
- openmosix 10y agoMurdoch invested in Theranos ~100M a few years ago https://www.theguardian.com/media/2016/nov/29/rupert-murdoch-theranos-investment-wall-street-journal https://www.theguardian.com/media/2016/nov/29/rupert-murdoch... You can only consider the investment "failed" if the company goes belly up. Till then, you have to wait to write the investment off (and request a tax credit on the loss). Selling it is a way to proof your investment is now worth ~zero - so you can write it off in the next fiscal year.
- yread 10y agoI don't understand why do you get a tax credit for a loss in stock investment. You don't get a tax credit for any other loss!