3 ms·

No, you can absolutely be taxed just for receiving the stock/ownership.

• ideamotor 4y ago
  If it’s not worth much and it’s spread across many employees, we aren’t talking about much.
  • deleted 4y ago
    [deleted]
  • NavinF 4y ago
    Wrong. It will be valued at something ridiculous like 20x EBITDA (average for tech related companies) and you'll be taxed on that number.
    • ideamotor 4y ago
      Doesn’t that depend on who values it? Also, I get the impression they have quite a few liabilities.
      • NavinF 4y ago
        In the GN interview they said they have plenty of cash. I'm sure they'll have to write down a lot of inventory because prices went down, but for tax purposes their valuation is still going to be very high based on earnings. That's why private companies other than startups rarely go this route.