Tax day is looming in the US, and Mark Zuckerberg will likely be writing a really big check

Tax day is looming in the US, and Mark Zuckerberg will likely be writing a really big check
If you live in the United States, April 15th is a date that holds a special place in your heart. You might love it if you are an accountant, or, more likely, you hate it because it is the deadline to file taxes.

A lot of people live their lives in ways to pay as little tax as possible, and many are successful. About half of the wage earners are able to get a refund of their withholdings and end up paying no income tax at all.

There are some taxes that are a lot harder to avoid however. Capital gains, or “unearned” income as it is sometimes referred to, are taxed at a lower rate overall, but unless you are moving a lot of money around in the process, Uncle Sam will get his share. Mark Zuckerberg, founder and CEO of the nearly ubiquitous social network Facebook, might be cutting a check to the Internal Revenue Service (IRS) for a whopping $1 billion.

When Facebook went public last year, Zuckerberg exercised an option to buy 60 million shares at 6 cents per share, adding roughly $2.3 billion in ordinary income to his bottom line for 2012. That qualifies for the higher federal tax rate of 35%, plus California’s stifling 13.3% rate (the highest in the US), and on that transaction alone, nearly half might be sent to the government.

None of this accounts for other income that Zuckerberg obviously made last year, nor does it consider whatever deductions that would be itemized, and while the IRS does not reveal individual tax return data, many money-gurus are thinking that Zuckerberg will have a total tax liability in excess of $1 billion for 2012.

Believe it or not, that is really unusual, even for billionaires, whose holdings usually generate income through capital gains, taxed at 15% for 2012, but goes up to 23.3% for 2013. During the IPO, Facebook disclosed that Zuckerberg was going to be selling stock to cover his tax liabilities. However, it will not end there as he still has 60 million options which expire in 2015, so he will likely be cutting another hefty check again very soon.

source: CNN Money

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16 Comments

1. Android4u

Posts: 456; Member since: Aug 16, 2012

Damn...spent most of my spring break just chillin..I hella forgot I had an accounting exam on Monday lol

2. sandysingh252

Posts: 27; Member since: Nov 22, 2011

Hey Mr. Maxwell, I feel the correct spelling is CHEQUE! You need to cross check what ever you write!

4. Mazaku

Posts: 2; Member since: Mar 29, 2013

Actually, In America the correct spelling is check. This article is referring to the United States, is it not?

5. sandysingh252

Posts: 27; Member since: Nov 22, 2011

Another pathetic American excuse, If the website is US based only, then why allowing it to be running worldwide! Why such unique spellings only in US!

6. Archan_Pe

Posts: 74; Member since: Apr 08, 2012

Maza has a point it is referring to the US, so it always a matter or preference. Its just like the Xperia Z, call it Z or Zed its a matter of choice and yes it may be an excuse but its not a pathetic excuse its a smart rebuttal. Your just saying that because you got corrected.

10. Mazaku

Posts: 2; Member since: Mar 29, 2013

I'm actually a little bit more confused why you're making such a big deal about it.

17. scsa852k

Posts: 331; Member since: Oct 16, 2012

WTF.....

11. mikeguy1981

Posts: 88; Member since: Jun 23, 2012

Cheque ? I live in connecticut united states and I've never heard of that word.

12. mikeguy1981

Posts: 88; Member since: Jun 23, 2012

I don't think cheque is even a english word. I shall have to look it up.

13. mikeguy1981

Posts: 88; Member since: Jun 23, 2012

Ok I looked it up cheque isn't english its a french word but in europe they follow the french spelling instead of english. Kinda odd. But the correct english spelling from what I looked up appears to be check.

14. linneti15

Posts: 49; Member since: Sep 26, 2012

It is spelled like that in Australia too, so I think it is spelled like that in every English speaking country aside from USA and maybe Canada. America has changed so many words its really annoying

16. TheMaxColonel

Posts: 48; Member since: Mar 14, 2013

You idiot! i live in the UK and guess what, the spelling is cheque. no one follows the French spelling

15. TheMaxColonel

Posts: 48; Member since: Mar 14, 2013

You are one fcuking dumb as*

3. sandysingh252

Posts: 27; Member since: Nov 22, 2011

And please Update the article, Don't just correct and hide your mistake! Be mature!

7. InspectorGadget80 unregistered

No on here cares bout rich guys.

9. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Yea right. He'll utilize tax loopholes so much it will make your head spin. I'll be shocked if he pays more than 5% than crook.

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