4 ms·
Yes, this is a very big problem especially for startups. Ex: Let's say I set up a nice startup that receives attention from an investor who purchases a 10% sta
by asto 15y ago
Yes, this is a very big problem especially for startups.
Ex: Let's say I set up a nice startup that receives attention from an investor who purchases a 10% stake in my company for a million dollars. My company is now worth 10 million "marked to market". So I will need to pay tax on the appreciation of my 90% stake from next to nothing to 9 million when I haven't actually earned a single buck!
Badly thought out article in my opinion. This move is practically untenable.
- edoloughlin 15y agoThere are problems with the proposal, but it does explicitly say it's for publicly traded stocks only and, thus, wouldn't apply to startups.
- Flenser 15y agoThe author said it was only for publicly traded stock. In your scenario you'd only have to pay tax if you did an IPO, at which point you would have the money.