@socialcap: One of the reasons top #ceo folks ask for a lower #salary. Yes, it signals dedication, and it also signals wanting to pay less in #taxes :) #tax #fintok #wealth #money #financialliteracy #PersonalFinance
Tyler Gardner
Region: US
Tuesday 17 January 2023 14:58:56 GMT
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Cool Ranch Luke :
You still have to pay income tax on the initial grant.
2023-01-17 21:42:44
51
will.deed :
Only $300k CEO comp? Must be a smallllllll company
2023-01-19 13:50:00
3
GaryVec :
Wrong. Stock options are taxed at ordinary income rates to the extent the sale proceeds exceed the strike price.
2023-01-18 14:13:29
2
bronant53 :
Except you owe taxes when it RSUs vests or non qualified options are exercised “money lessons”. The only loophole would be ISO stock options.
2023-01-17 21:44:08
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Andy Brown :
It’s not 35% of the entire 300K, it’s 35% for the amount over $215,950.
2023-01-18 23:51:41
2
Charleston Gent :
You have to own the shares for at least a year to get cap gains treatment. And if the options have any value when issued that is taxable.
2023-01-17 21:38:21
4
Rubens :
They have been working to try and close this for years. It’s the biggest issue in Silicon Valley
2023-01-17 19:34:18
4
Jenny :
But how do you pay your bills in the meantime? I understand may be a reduced salary at one dollar?
2023-01-17 21:13:23
11
Alexx :
$1 salary and a $300k tax free loan is best!
2023-01-18 06:13:54
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Sean Harmon :
Ok, now you have to explain the effective tax rate because you're not going to be taxed at 35% for the whole $300k
2023-01-19 01:09:23
2
kara.t17 :
it's not 35,,%..... it's only 35 for ONLY the money above the tax bracket.
2023-01-17 22:21:10
3
Perry :
That’s just one example there are at least a million more ways the 1% evade taxes.
2023-01-19 12:58:16
2
wupierto :
That’s what Frank Lorenzo did with Texas Air (Continental/Eastern airlines)
2023-01-19 04:51:43
2
glidinghypnotist :
Here we pay about 1% on the capital....
2023-01-18 00:49:56
2
user21669689725513 :
No mind the fair and reasonable compensation rules I guess
2023-01-17 20:30:45
3
Jess Inskip :
So true! Look at Musk TSLA sales 😂
2023-01-27 13:34:57
2
DnDungeonMaster :
Lol but how do you pay your bills regularly
2023-01-17 23:37:30
5
Mark :
Holding period. Good luck living off $1 for a year lol
2023-02-06 06:54:31
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Tyler Gardner :
Why do you think top CEOs take small salaries? I’ll give you a hint…it’s not always about altruism and their commitment to the company…😂
2023-01-17 15:00:26
5
RobbiinK :
$300K isn’t a lot for a CEO…
2023-01-18 08:21:51
2
globaltaquito :
Yeah no not necessarily
2023-01-18 02:19:08
2
CHIVAL_REBA_McENTIRE :
You can also take a loan on the stock value for daily expenses
2023-01-17 20:31:19
2
jcolt07 :
But that 20% is based off if you're own company right?
2023-01-17 16:56:01
2
stevekspr :
It's a graduated tax system and you likely have greater than 50k in deductions. You're not paying 35%.
2023-01-18 01:17:59
2
kevinmartin8185 :
My accountant always tells me that if I position my salary too below industry norms, that triggers a red flag at the IRS. I think she’s too honest.
2023-01-17 17:58:20
2
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