3 ms·
> But now how do you collect the tax? Do you make him sell 95% of his shares of Amazon? That would certainly tank the stock, and then you would owe him a big re
by FireBeyond 3y ago
> But now how do you collect the tax? Do you make him sell 95% of his shares of Amazon? That would certainly tank the stock, and then you would owe him a big refund for overtaxing him.
Apropos of anything else, the IRS bases things on the calendar year, and then gives you to April to "settle up". It wouldn't owe him a refund in this situation, then, but his next year tax bill might be lower.
- jedberg 3y agoIf the law didn’t have a way to get a refund for a loss in value when you sold to pay the tax then you could potentially owe more than you have. I was assuming such a law would have to have a provision for that. If you get assessed at 100 billion, start selling off the assets and when you get to 50 billion you have nothing left because of the loss of value, you’d still owe 45 billion? That wouldn’t be fair at all.