Plebble on Nostr: Sorry, was multi tasking which is never a good idea. I'll make it as hypothetical ...
Sorry, was multi tasking which is never a good idea. I'll make it as hypothetical example of what happened to me. Say myself and the programmer I worked with got a million bucks each and took 50% cash/share split.
My tax was 48% of 1m = 480k and I got to take 20k. When I come round to sell the shares, am not sure (neither was my accountant) whether just the 20% capital gains or again as income it would have been sell for 500k (assuming no gains) and pay 100k or 240k tax. Total tax of 580k or 720k.
He paid 10% entrepeneurs tax so 50k and then would have had to pay capital gains at 20% on the sale of shares or 100k. Total tax 120k.
Whilst I understand it was a very strange situation that I had not known about as it's very obscure, it still shows how bad it can get. In this case, I lived in Spain which was party to a tax agreement made within europe on taxes on sales of companies registered in USA. Spain pulled out of the agreement a few months after signing and that's where it sits right now.
My tax was 48% of 1m = 480k and I got to take 20k. When I come round to sell the shares, am not sure (neither was my accountant) whether just the 20% capital gains or again as income it would have been sell for 500k (assuming no gains) and pay 100k or 240k tax. Total tax of 580k or 720k.
He paid 10% entrepeneurs tax so 50k and then would have had to pay capital gains at 20% on the sale of shares or 100k. Total tax 120k.
Whilst I understand it was a very strange situation that I had not known about as it's very obscure, it still shows how bad it can get. In this case, I lived in Spain which was party to a tax agreement made within europe on taxes on sales of companies registered in USA. Spain pulled out of the agreement a few months after signing and that's where it sits right now.