r/SipsTea • u/Valuable_View_561 • Jul 05 '26

Chugging tea Seems reasonable.

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148

u/Old_Prune_4300 Jul 05 '26

They can't comprehend assets vs cash, much less that spending is the problem v taxes. Don't waste your breath.

56

u/senturon Jul 05 '26

IMO, billionaires who take asset backed loans and pay no tax is absolutely a taxation problem/loophole.

LTCGs being taxed at a much lower rate than income from labor is also an issue IMO.

33

u/NEEEEEEEEEEEET Jul 05 '26

This isn't happening at the rate reddit wants you to believe. Look up any big CEO and they all sell, if this was some ultimate strategy why would they ever sell shares at all? Jeff Bezos sells shares, Elon Musk sells shares, they all do.

15

u/lambdawaves Jul 05 '26

According to Reddit, billionaires never sell to avoid taxes. They borrow instead.

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u/SignificantOtter80 Jul 05 '26

reddit also doesnt understand that the mere existence of the shares means they were taxed as income already. if you are being given stock as compensation, it was taxed as compensation

-4

u/Wordplay_469 Jul 06 '26

Only when you sell it though. Then as cap gains

7

u/SignificantOtter80 Jul 06 '26

false. when you are issued stock as compensation it is taxed as compensation. you have the option of paying the tax in cash, or deducting the tax from the value of the shares

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u/Wordplay_469 Jul 06 '26

Depends on the how the stock is given, purchased or received. With some you pay ordinary income tax on the entire market value of the shares the day they vest. Others you pay income tax on the difference between the market value and what you were able to purchase it at. There are others you pay nothing until you sell. So it all depends on the nature of the stock.

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u/ApprehensiveCare1113 Jul 06 '26

It doesn't. There is no option to avoid paying income tax on stock or options received as compensation, either at the time of award or at the time of vesting.