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Not paying taxes on money you haven't received is not a "loophole".
by orangecat 2y ago
Not paying taxes on money you haven't received is not a "loophole".
- Retric 2y agoIn other situations taxes apply to money you haven’t received. Exercise an options contract and you’re taxed before you sell the shares. At that point you could still ultimately lose money just as with capital gains.
- seanmcdirmid 2y agoRSU grants are taxed even if you haven't sold the stock you are granted. But they commonly deal with this by selling some stock right away to cover tax liabilities. The problem with exercising an option is that the stock might not be traded or can't be sold, then you have to pay the tax out of pocket, since Uncle Sam doesn't want some private non-traded stock.
- Retric 2y agoSure, but in comparison the unrealized capital gains loophole just becomes more clear. Property taxes based on assessed value are common for other asset classes like cars and land.