3 ms·
Is it different from the tax you would face if you just realize your gains?
by dgellow 5mo ago
Is it different from the tax you would face if you just realize your gains?
- anaisbetts 5mo agoThe exit tax doesn't apply to "gains", it applies to the "value of your company" which is calculated in a way that often means you will owe thousands or even millions in money you don't have, and at no time had.
- dgellow 5mo agoSounds indeed pretty terrible…
- lazyasciiart 5mo agoYes - the value of your company is the gain. It is the money you would have if you sold the whole thing.
- procaryote 5mo agoIt's only a gain if you sell. Selling a company and paying tax on the profit in tax is a completely different proposition from paying tax on hypothetical profit you haven't made (and might never make) just because you want to move.
- lazyasciiart 5mo agoThat's what unrealized means. Gains you haven't got because you haven't sold.
- procaryote 4mo agoand if we started taxing them across the board, no one would dare hold stock
- jandrewrogers 5mo agoMost unrealized gains are a notional value, the realizable gains are often much smaller. The act of realization can cause a crash in value.