3 ms·
Apple might make no profit, but wouldn't the shareholders selling their stock back to Apple have to report the sale as capital gains? So (at least some) taxes w
by mwint 5y ago
Apple might make no profit, but wouldn't the shareholders selling their stock back to Apple have to report the sale as capital gains? So (at least some) taxes would be paid on that money, just not by Apple directly.
- LatteLazy 5y agoSo, if they paid a dividend apple would pay Corp tax AND the share holder would pay cap gains. A buy back avoids the Corp tax and let's the shareholder delay paying (until they sell) and also pay a lower rate if they're careful (long term holdings I think get a lower rate, 10% I think?). There is another reply here saying Corp tax is still due. I didn't think it was but I'll check after dinner.
- ClumsyPilot 5y agoIf my shares are handled by an LTD I'll never pay tax because i will keep reinvesting that monet.
- LatteLazy 5y agoYou'd pay once you took the money out right?