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Why? the USA's taxing of stock that have not had a taxable gain is just wrong and I say that as some one to the left of AOC
by C1sc0cat 7y ago
Why? the USA's taxing of stock that have not had a taxable gain is just wrong and I say that as some one to the left of AOC
- gamblor956 7y agoIf you can use the stock in any way, including as a collateral, you have had a taxable gain... Taxable gain in pretty much all of the Western World results from "dispositions" of items, which includes non-sale transactions. Also, the kind of stock we are describing was issued as compensation, and taxation was either reduced or deferred depending on the circumstances, so it is entirely appropriate to tax certain non-sales gains related to the stock.
- C1sc0cat 7y agoNo sane person would lend money on an illiquid stock with no value what if the company went bust "sorry mate" tanks for the 100,000 loan hers some worthless paper in return.
- gamblor956 7y agoGenerally for illiquid stock banks require significant overleverage, but it is something they do quite regularly, especially for startups with perceived future value.