3 ms·
To clarify, if you were paid in gold, that's still income and you would still be taxed on the fair market value of that gold. It's income that's taxed, not USD.
by basseq 5y ago
To clarify, if you were paid in gold, that's still income and you would still be taxed on the fair market value of that gold. It's income that's taxed, not USD.
Same as stock grants: if you're paid in stock, you pay income taxes when that stock is granted, at the market value of that stock.
You aren't taxed on the FMV increase of that stock until you sell it (at which point you're taxed on capital gains).
- bin_bash 5y agoyes but billionaires never sell. They take out loans using their assets as collateral. That way they don't have to report income.
- neosenate 5y agoHow are the loans paid back? I could never figure this one out. If they have to sell assets to pay for the loan, don’t they then get taxed at point of sale?
- bin_bash 5y agoThey either get terms where they have to make minimal payments if any, and refinance before the due date. Or they take out more loans to make the payments. Eventually they just die and the estate pays it off tax-free.