Report: NFL generated $11 billion in national revenue in 2021
New York (CNN Business concern)Elon Musk says his tax bill this year volition be $11 billion, and he'south probably right: The filings he has made with the Securities and Exchange Commission about his recent stock trades back up that massive number.
Musk revealed the $xi billion total in a tweet Lord's day that was otherwise short on details.
This is not significantly dissimilar from what he had tweeted final week when, in the midst of a Twitter war with Sen. Elizabeth Warren, he said he'd pay the largest individual taxation bill in history this year.
That would be a massive change from some contempo years. An investigation past ProPublica found that Musk, and fellow billionaires such every bit Jeff Bezos and Michael Bloomberg, legally paid zero in income taxes in 2018.
Musk, the world'southward richest person, doesn't earn a cash salary or bonus. He's instead been paid through stock options, giving him the right to buy shares of Tesla (TSLA) at a price equal to the marketplace price at the time the options are issued, merely probable well beneath their value at the time they are exercised.
Musk received 25.5 million split-adjusted options in 2012, and had 22.nine million of those options vest over subsequent years every bit Tesla hit certain operational and financial targets. But he didn't have to pay taxes on those options until he used them to purchase shares.
Since that block of options is due to expire in August 2022, Musk finally started the process of turning them into shares of stock in early on November. And he documented those trades in SEC filings, every bit company insiders are required to do.
When he exercises the options, the value of the newly purchased shares are taxed as income — a twoscore.8% rate for someone in Musk'due south tax bracket.
And that is where the huge tax bill comes from.
As part of the process of exercising the options, Musk has been selling a portion of the newly acquired shares to cover the withholding tax due on the trades, according to his filings. Those sales so far take totaled vii.5 meg shares, bringing in $7.8 billion and then far, including the exercise cost.
In addition to the sales of shares he acquired exercising options, he's as well sold some 5.4 million shares that he had held in trust since the showtime of this process, though those sales volition exist taxed at a lower, long-term capital-gains charge per unit of twenty%.
So, all told, the federal tax nib on his 2021 stock trades comes to almost $8.4 billion.
But he'due south likely not done nevertheless.
Musk exercising his options and selling some of those shares is being washed as part of a pre-bundled plan that allows company insiders to trade stock without being defendant of trading on inside information.
Based on by trades, Musk will likely exercise at least 4.2 million more options past year's end, or perhaps even all of the remaining v.7 million options that are expiring in August. That will likely enhance his taxes past between $i.6 billion and $ii.1 billion.
So he'll be shut to an $11 billion tax nib by yr's end.
And none of these calculations involve any potential land income taxes.
Musk has moved his residence — and Tesla's official home — to Texas, which does not impose a state income tax on individuals. California's income tax rate is the highest in the nation — about 12%. Although it is not clear how much of his income volition be subject field to that taxation, he likely won't avoid it altogether, despite his new address.
"Btw, I volition go on to pay income taxes in California proportionate to my time in land, which is & will be significant," Musk tweeted in June.
Source: https://www.cnn.com/2021/12/20/investing/elon-musk-11-billion-dollars-taxes/index.html
Posted by: espositohessity.blogspot.com
0 Response to "Report: NFL generated $11 billion in national revenue in 2021"
Post a Comment