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It seems strange to describe it as a "non problem" when he's successfully evaded something like a billion dollars in taxes. Romney did the same. Certainly many
by mikeyouse 5y ago
It seems strange to describe it as a "non problem" when he's successfully evaded something like a billion dollars in taxes. Romney did the same. Certainly many others have as well.
Thiel bought his shares at $0.001/share in the same round where the company was valued at $0.20/share. At very least, he should've been capped at 10,000 shares in the IRA but instead he contributed 1.7 million ($2k/year IRA contribution limit at the time).
It's like describing a software bug as a non problem since it only lead to two intrusions.. that you know of.. that cost your company a ton of money.
- drocer88 5y agoRomney's was in a regular IRA. He delayed taxes. Withdrawals are taxable as regular income. If he was really smart, he would have done it outside his IRA and paid the taxes on the lower capital gains rate.
- caseysoftware 5y ago> Thiel bought his shares at $0.001/share in the same round where the company was valued at $0.20/share. The strike price and the "fair market value" are often different so there's nothing exceptional or even unique there. Odds are, half the people reading this thread have had the same situation in their careers. The difference is that this company (Paypal) ended up working so those shares became valuable. If you or I did it, we'd pay the strike price, it'd be reported to the IRS at the FMV, and we'd pay the tax on the difference. In this case, it would be some percent (22? 25?) of 1.7M*(0.20-0.001) or ~$338k. Of course, from there you get into the "unrealized gains" battle that screws over people with illiquid shares.