Tax News Facebook CEO Joined $1 Salary Club to Reduce Tax Bite Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Modified Aug 23, 2019 1 min read Facebook Who said the rich and famous don’t need to worry about their tax bill? Facebook CEO, Mark Zuckerberg, joined the CEO $1 salary club in 2013 to take the bite out of his tax bill. Typically CEOs have been known to lower their salaries to $1 after their company’s stock takes off and Mark Zuckerberg was no different. Since he knew his stock options would be heavily taxed, Zuckerberg limited his Facebook salary to $1, however his reduction in salary didn’t help him eliminate his tax bill too much since he racked up a 3.3 billion gain last year by exercising his stock options in Facebook. But what does that mean for his taxes? Since the IRS may view stock options as ordinary income if they are held for less than one year, Zuckerberg will be taxed at the top federal tax rate of 39.6% and his tax liability is estimated at $2.3 billion. Zuckerberg being the man with the plan is covering his tax bill by selling 41.4 million of his Facebook shares worth 2.3 billion and making a substantial charitable deduction. Previous Post IRS Resumes Operations: What This Means For Your Taxes Next Post IRS Announces Immediate Tax Benefits for Contributions to Philippines Typhoon… Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. One response to “Facebook CEO Joined $1 Salary Club to Reduce Tax Bite” Oh man, I wish he would give me some of that stock!!! I sure could use it and it would be such a blessing!! Reply Leave a Reply Cancel reply Browse Related Articles Tax Tips How to Avoid Self Employment Tax & Ways to Reduce I… Income and Investments The Taxing Life of a Pro Athlete Taxes 101 Switch Jobs? How to Keep the Tax Man Away from (Some of… Self-Employed Do I Need to File a 1040 If I’m Self-Employed? Income and Investments Bonus Time: How Bonuses Are Taxed and Treated by the IR… Income and Investments A Look at 6 Common 1099 Forms Self-Employed How Much are Medicare Deductions for the Self-Employed? Taxes 101 Capital Gains Tax Explained (What Is It & How Much … 401K, IRA, Stocks What Happens to Employees When a Company Goes Public? Tax Deductions and Credits Can You Deduct 401K Savings From Your Taxes?
Oh man, I wish he would give me some of that stock!!! I sure could use it and it would be such a blessing!! Reply
