3 ms·
Yeah, but those taxes are based on the value of the shares today ($1.5m) minus what it'll cost him ($4k). Even though he's not actually profiting on that diffe
by tr3ntg 5y ago
Yeah, but those taxes are based on the value of the shares today ($1.5m) minus what it'll cost him ($4k).
Even though he's not actually profiting on that difference yet, you still usually owe taxes on it. So we're talking hundreds of thousands of dollars in taxes.
It's no small thing.
- moneywoes 5y agoSorry dumb question but when would he owe those taxes? At the end of the year?
- moneywoes 5y agoWould they be long term capital gains in this situation?
- booblik 5y agoLOL, no, taxes on today’s valuation are only due when you sell. And that would be very low long term capital gains tax. Albeit in this case the writer is not American so the tax situation might differ.