Mark Zuckerberg may owe $1.1 billion in taxes
The Facebook founder bought 60 million shares of his company for just 6 cents during the IPO. The IRS treats that as income, even if he hasn't sold those shares.
Zuckerberg bought 60 million Facebook shares for just 6 cents each on May 18, 2012, the day of the company's initial public offering, CNNMoney reports. But even if he never sold those shares, they still count as income, bringing his income just from stock options last year to nearly $2.3 billion.
Under California's highest-tier tax bracket, Zuckerberg would likely get taxed at 48.3%. There are several loopholes the wealthy can take advantage of, but three California accountants that CNNMoney talked to estimated Zuckerberg's 2012 taxes at higher than $1 billion.
To put that in perspective, Zuckerberg is paying almost half of 1% of the total that all Americans paid in 2011, according to The Huffington Post.
Zuckerberg wasn't surprised by the tax bill. He sold some 30.2 million shares for $1.135 billion during the IPO just to cover the costs, according to CNNMoney.
Zuckerberg may be paying up, but his company has escaped the long arm of the IRS. My colleague Aimee Picchi reported in February that Facebook skipped out on federal and state income taxes and may have actually received tax refunds of $429 million.
Well he owes some taxes...That's a good thing...
But I'll bet there are a battery of Lawyers and Tax Accountants, working night and day; On ways to cut that bill substancially.....Just sayin...
Yes I agree with scrapping the tax codes as wriiten, they are a nightmare.
They can't scrap the tax codes because the IRS would lose money by dumbing everything down so that the average american could understand it and fight back!
Anyone reading this could have invented facebook, but didn't. According to the socialist Obama, it's Zuckerberg's duty to support all of those who didn't work hard enough to get into Hardward and didn't have the ability to do what he did. His tax bill is ridiculous as is the lunacy of the socialists.
What business do you think Zuckerberg might create with 1.1 BILLION DOLLARS and how many people do you think it might employ. Or if he had it to spend and spent it, how many jobs would that create vs. giving it to a very wasteful government, which uses it to let our rulers buy votes.
And that last part refers to Republicans too!
big privacy thief's !!!more scam and lies and corruption from facebook he sold more then 1 billion shares to friends and private bankers before it was on the real share market other people go to jail for it !!! the keep there likes, and fig up with bots still and all in court for it !!! people must be blind?? its not a company !!! the don't have value the try to sell tin air ?!!!
Copyright © 2014 Microsoft. All rights reserved.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.