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Ok, I have put a lot of my knowledge and planning into my LLC. Wanna buy it for a bargain price of $1000? Sure, it has no assets, but think of all the knowledge

by xyzzyz 5y ago

Ok, I have put a lot of my knowledge and planning into my LLC. Wanna buy it for a bargain price of $1000? Sure, it has no assets, but think of all the knowledge and planning I put into it.

acdha 5y ago
Have you already raised funds, as he had? Are you aware of major additional investments pending, as he was? Do you have business deals in progress, as they did? There’s a reason why their own SEC filings described those shares as being issued below fair value. A simple fix for this would be to prevent private holdings from being placed into a Roth since independent valuations are hard to establish without market data but it’d be even better to simply cap the tax-free gains as suggested - if you accumulate millions in returns, paying taxes on the portion over n million is fine because you’ve still been phenomenally lucky and will retire wealthy.
- xyzzyz 5y ago
  Sorry, has Thiel already raised funds before adding stock to IRA, and nevertheless didn’t use the 409a value? Where did you get this information from? I see people claim this, but I have not seen any source for it.
  - colinmhayes 5y ago
    The proPublica article says that paypal raised half a million dollars less than a month after he sold himself the shares. It raised millions more that year. Peter absolutely had been given a valuation by the venture capital firms when he sold himself the shares, deals like that don't suddenly materialize in less than a month. We can get into semantics about if paypal was actually worth what the firms were about to pay, but I think it's pretty clear that Peter committed fraud by selling himself shares for far less than he knew them to be worth. This isn't a "I feel like these are worth a lot" scenario. This is a "we'll give you half a million dollars in a couple weeks" scenario and then Peter undercut that valuation.

by xyzzyz 5y ago

Ok, I have put a lot of my knowledge and planning into my LLC. Wanna buy it for a bargain price of $1000? Sure, it has no assets, but think of all the knowledge and planning I put into it.

acdha 5y ago

Have you already raised funds, as he had? Are you aware of major additional investments pending, as he was? Do you have business deals in progress, as they did? There’s a reason why their own SEC filings described those shares as being issued below fair value. A simple fix for this would be to prevent private holdings from being placed into a Roth since independent valuations are hard to establish without market data but it’d be even better to simply cap the tax-free gains as suggested - if you accumulate millions in returns, paying taxes on the portion over n million is fine because you’ve still been phenomenally lucky and will retire wealthy.

xyzzyz 5y ago
Sorry, has Thiel already raised funds before adding stock to IRA, and nevertheless didn’t use the 409a value? Where did you get this information from? I see people claim this, but I have not seen any source for it.
- colinmhayes 5y ago
  The proPublica article says that paypal raised half a million dollars less than a month after he sold himself the shares. It raised millions more that year. Peter absolutely had been given a valuation by the venture capital firms when he sold himself the shares, deals like that don't suddenly materialize in less than a month. We can get into semantics about if paypal was actually worth what the firms were about to pay, but I think it's pretty clear that Peter committed fraud by selling himself shares for far less than he knew them to be worth. This isn't a "I feel like these are worth a lot" scenario. This is a "we'll give you half a million dollars in a couple weeks" scenario and then Peter undercut that valuation.