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) Facebook Click to share on X (Opens in new window) X Click to share on LinkedIn (Opens in new window) LinkedIn Click to share on Pinterest (Opens in new window) Pinterest Click to print (Opens in new window) Print Written by TurboTaxLisa Published Apr 1, 2014 - [Updated 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 ReplyCancel reply Browse Related Articles Tax Tips How to Avoid Self-Employment Tax & Ways to Reduce It Taxes 101 Switch Jobs? How to Keep the Tax Man Away from (Some of) Your New Salary Tax Deductions and Credits Moving? Let Uncle Sam Help Pay for Your Move 401K, IRA, Stocks What Happens to Employees When a Company Goes Public? Income and Investments A Look at 6 Common 1099 Forms Income and Investments Are Bonuses Taxed? How Bonuses Are Taxed and Treated by the IRS Taxes 101 What is Capital Gains Tax? Capital Gains Explained & How to Avoid Capital Gains Tax Tax Planning Start Tax Planning Early: 8 Great Year-End Tax Tips Tax News Spending Bill Passes: What’s Next for the Payroll Tax Bill? Tax News The House Passed the $1Trillion Spending Bill
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