4 ms·
Dividends would have been taxed. “Stock buy-backs are just...” leaves a lot out, enough that one might wonder if it were intentional.
by mikestew 6y ago
Dividends would have been taxed. “Stock buy-backs are just...” leaves a lot out, enough that one might wonder if it were intentional.
- mrep 6y agoThe company buying back their stock had to buy it from someone though and that person who sold it is going to pay a tax on any gains from that sale.
- mikestew 6y agoI bought way too high, so when I sell my AcmeCo stock back to AcmeCo, I’ll get a tax refund! If you want to tax profits, then tax profits. If you want to have cheesy loophole tax avoidance, stock buy-backs might be more your style.