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It's a pretty smart loophole but it's not like he came up with this. He has tax specialists for that. Now, it's probably not a good idea for loopholes like thes
by cinntaile 5y ago
It's a pretty smart loophole but it's not like he came up with this. He has tax specialists for that. Now, it's probably not a good idea for loopholes like these to exist. Articles like these can certainly make a difference to close them. Although it's definitely not black and white, excluding private shares would be too broad imo but maybe a different mechanism to determine the value should be used.
More general I'd say Peter Thiel is both loved and hated and everything in between on HN, there is no real consensus.
- jrochkind1 5y agoWhy would excluding private shares be too broad? What portion of non-super-rich IRA's do you think have private shares in them? Probably approaching zero, right? Do people really need private shares to be able to set up retirement accounts? People can buy private shares when they have access to do so, they just can't use their IRA for it.
- cinntaile 5y agoI don't have any experience with the US tax system but where I live we have certain accounts that exclude private shares (and many other things). The main problem is valuing these shares correctly and if this can be done in an appropriate way I think it makes sense to not exclude them. For example... Private shares can be traded and are sometimes relatively liquid even though they're not public, in that case the trading price should be pretty representative of its real value.