4 ms·
I am no longer employed there. I hold them mostly for nostalgic purposes. I sold all of my shares because it seemed foolish to have 100% of my net worth in one
by exithrowaway564 8y ago
I am no longer employed there. I hold them mostly for nostalgic purposes. I sold all of my shares because it seemed foolish to have 100% of my net worth in one company. Holding 1000 shares feels okay. Tax bill was ~0 on the $14K and my marginal tax rate on half (I’m Canadian)
- nodesocket 8y agoHow do you not owe any tax on $14,000 income? Is that some Canadian benefit?
- desdiv 8y agoWhen a Canadian has $14,000 in capital gains, their tax liability is calculated as: $14,000 * 50% * marginal tax rate. The 50% is basically the Canadian way of taxing capital gains lower than earned income. What GP was trying to convey, albeit in a slightly confusing fashion, was this: 1. He had $14,000 in capital gains 2. No tax was directly accessed against this $14,000 amount, in other word: "tax bill was ~0 on the $14K". 3. The taxable portion of his capital gains was $14,000 * 50% = $7000 4. He paid his marginal tax rate on the taxable portion of his capital gains ($7000)
- exithrowaway564 8y agoSorry, yeah, could have been a lot more clear there. I was making extremely little salary at the time of the secondary, so I paid something like 20% tax on half, for about $1400 in taxes on $14k proceeds.
- aws_ls 8y agoWise move. Better to sell if off, to avoid "all eggs in one basket" and have the basket fall. 20% earned in a probability friendly way, is much better than 100% in a low probability way (as very high chances would have been of it nearing 0%)