Mark Zuckerberg may need to pay $2 billion in taxesFebruary 8th, 2012 - 8:17 pm ICT by Aishwarya Bhatt
New York, Feb 8 (THAINDIAN NEWS) Facebook founder Mark Zuckerberg may pay up to $2 billion in taxes after his successful social network goes public this year. Tax experts are looking into the books to determine if the amount is the biggest tax paid by any corporation of individual.
Zuckerberg currently owns about 414 million shares in Facebook. According to the current arrangements, the 27-year-old has the option to further buy 120 million shares at 6 cents each when the company goes public. Facebook’s opening share price is $29.73 and that will take Zackerberg’s option to $3.6 billion.
He is rumored to be preparing to sell some of his shares to pay for the tax bill. Tax experts estimate that Zuckerberg will pay between $1.5 billion and $2 billion in 2012.
A San Francisco CPA who specializes in stock options planning, Stan Pollock, said that, “He’s doing it the smart way…We learned from the dot-com bust that people should do it that way — sell shares to cover the tax bill…People were exercising options and holding them in anticipation of the stock going up and up. The stock would go and up and up and up — and then go down. A lot of people were stuck with huge tax bills and no money to pay the bills.”
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