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Do you give him a refund if AMZN drops, then? Taxing change in mark-to-market wealth is a huge change in tax code and probably shouldn't be done reactively. His
by throwaway5752 8y ago
Do you give him a refund if AMZN drops, then? Taxing change in mark-to-market wealth is a huge change in tax code and probably shouldn't be done reactively. His grants are probably taxed as W-2 income, as is his salary. Maybe he has accounting tricks for it and I won't speculate, but at issue is his longstanding, large position in AMZN that goes back decades because he was the sole founder and they only took two funding rounds.
- deleted 8y ago[deleted]
- anothergoogler 8y ago> Do you give him a refund if AMZN drops, then? I hope you're aware that investors already get to write off their losses.
- throwaway5752 8y agoUnless you know something I don't, this is when they sell a position. If you tax the delta in wealth on the way up (absent an exit that creates a taxable gain), what do you do if wealth decreases? I.e. If I hold 100 shares of AMZN at $1,000 and it doubles to $2000 without me selling, and I owe taxes on the increase in net wealth from $100k to $200k.. what happens if AMZN drops by 25% the next year. Also, what does this do to the predictability of tax receipts for federal budgeting?