Why Elon Musk will end up with an $11 billion tax bill this year

CNN Business2021-12-21

New York (CNN Business) - Elon Musk says his tax bill this year will be $11 billion, and he's probably right: The filings he has made with the Securities and Exchange Commission about his recent stock...

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Comments

Tamashii
2021-12-21
Tamashii
Will tesla drop more?
- Kelvin_Qiu:
  [Doubt]
Etet1985
2021-12-21
Etet1985
Yes
- Tamashii:
  wow
玉树临风英俊
2021-12-21
玉树临风英俊
👌
Yukarin
2021-12-21
Yukarin
nice
Sandman6624
2021-12-21
Sandman6624
What about Donald Trump ? 🤔🤔🤔
JcJc
2021-12-21
JcJc
Wow

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Elon Musk will end up with an $11 billion tax bill this year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-21 11:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/20/investing/elon-musk-11-billion-dollars-taxes/index.html><strong>CNN Business</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>New York (CNN Business) - Elon Musk says his tax bill this year will be $11 billion, and he's probably right: The filings he has made with the Securities and Exchange Commission about his recent stock...</p>\n\n<a href=\"https://edition.cnn.com/2021/12/20/investing/elon-musk-11-billion-dollars-taxes/index.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TSLA","symbol_name":"特斯拉","start_time":0,"source_url":"https://edition.cnn.com/2021/12/20/investing/elon-musk-11-billion-dollars-taxes/index.html","article_id":"1163497621","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1163497621","pubTimestamp":1640055634,"sourceInfo":null,"weMediaInfo":null,"summary":"New York (CNN Business) - Elon Musk says his tax bill this year will be $11 billion, and he's probab","collect":0,"end_time":0,"defaultTopTitle":"cnn.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TSLA":"特斯拉"},"translate_title":"为什么埃隆·马斯克今年会有110亿美元的税单","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLA":0.9},"content_text":"New York (CNN Business) - Elon Musk says his tax bill this year will be $11 billion, and he's probably right: The filings he has made with the Securities and Exchange Commission about his recent stock trades back up that massive number.\nMusk revealed the $11 billion total in a tweet Sunday that was otherwise short on details.\nThis is not significantly different from what he had tweeted last week when, in the midst of a Twitter war with Sen. Elizabeth Warren, he said he'd pay the largest individual tax bill in history this year.\nThat would be a massive change from some recent years. An investigation by ProPublica found that Musk, and fellow billionaires such as Jeff Bezos and Michael Bloomberg,legally paid zero in income taxes in 2018.\nMusk, the world's richest person,doesn't earn a cash salary or bonus. He's instead been paid through stock options, giving him the right to buy shares of Tesla(TSLA) at a price equal to the market price at the time the options are issued, but likely well below their value at the time they are exercised.\nMusk received 25.5 million split-adjusted options in 2012, and had 22.9 million of those options vest over subsequent years as Tesla hit certain operational and financial targets. But he didn't have to pay taxes on those options until he used them to buy shares.\nSince that block of options is due to expire in August 2022, Musk finally started the process of turning them into shares of stock in early November. And he documented those trades in SEC filings, as company insiders are required to do.\nWhen he exercises the options, the value of the newly purchased shares are taxed as income — a 40.8% rate for someone in Musk's tax bracket.\nAnd that is where the huge tax bill comes from.\nAs part of the process of exercising the options, Musk has been selling a portion of the newly acquired shares to cover the withholding tax due on the trades, according to his filings. Those sales so far have totaled 7.5 million shares, bringing in $7.8 billion so far, including the exercise price.\nIn addition to the sales of shares he acquired exercising options, he's also sold some 5.4 million shares that he had held in trust since the start of this process, though those sales will be taxed at a lower, long-term capital-gains rate of 20%.\nSo, all told, the federal tax bill on his 2021 stock trades comes to about $8.4 billion.\nBut he's likely not done yet.\nMusk exercising his options and selling some of those shares is being done as part of a pre-arranged plan that allows company insiders to trade stock without being accused of trading on inside information.\nBased on past trades, Musk will likely exercise at least 4.2 million more options by year's end, or perhaps even all of the remaining 5.7 million options that are expiring in August. That will likely raise his taxes by between $1.6 billion and $2.1 billion.\nSo he'll be close to an $11 billion tax bill by year's end.\nAnd none of these calculations involve any potential state income taxes.\nMusk has moved his residence — and Tesla's official home — to Texas, which does not impose a state income tax on individuals. California's income tax rate is the highest in the nation — about 12%. Although it is not clear how much of his income will be subject to that tax, he likely won't avoid it altogether, despite his new address.\n\"Btw, I will continue to pay income taxes in California proportionate to my time in state, which is & will be significant,\" Musk tweeted in June.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":691090360,"gmtCreate":1640094130358,"gmtModify":1676532403459,"author":{"id":"4087109479010510","authorId":"4087109479010510","name":"Tamashii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4087109479010510","idStr":"4087109479010510"},"htmlText":"Will tesla drop more?","listText":"Will tesla drop more?","text":"Will tesla drop more?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/691090360","repostId":1163497621,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":7098746,"gmtCreate":1640344767332,"gmtModify":1640344767332,"authorId":3581638828642415,"author":{"id":3581638828642415,"idStr":"3581638828642415","authorId":3581638828642415,"name":"Kelvin_Qiu","avatar":"https://static.tigerbbs.com/58df4d9e030a9766be7d0b65f5e798af","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-1","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Boss Tiger","description":"The transaction amount of the securities account reaches $100,000","bigImgUrl":"https://static.tigerbbs.com/c8dfc27c1ee0e25db1c93e9d0b641101","smallImgUrl":"https://static.tigerbbs.com/f43908c142f8a33c78f5bdf0e2897488","grayImgUrl":"https://static.tigerbbs.com/82165ff19cb8a786e8919f92acee5213","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.04.15","exceedPercentage":"60.62%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":691090360,"type":1,"supId":0,"prevId":0,"content":"[Doubt]","text":"[Doubt]","html":"[Doubt]"}],"langContent":"CN"},{"id":691004636,"gmtCreate":1640093698695,"gmtModify":1676532403414,"author":{"id":"3584157211271817","authorId":"3584157211271817","name":"Etet1985","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3584157211271817","idStr":"3584157211271817"},"htmlText":"Yes","listText":"Yes","text":"Yes","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/691004636","repostId":1163497621,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":7066895,"gmtCreate":1640094136452,"gmtModify":1663239005347,"authorId":4087109479010510,"author":{"id":4087109479010510,"idStr":"4087109479010510","authorId":4087109479010510,"name":"Tamashii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":691004636,"type":1,"supId":0,"prevId":0,"content":"<u>wow</u>","text":"<u>wow</u>","html":"<u>wow</u>"}],"langContent":"CN"},{"id":9000834955,"gmtCreate":1640086668501,"gmtModify":1676533500493,"author":{"id":"3580076354872466","authorId":"3580076354872466","name":"玉树临风英俊","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3580076354872466","idStr":"3580076354872466"},"htmlText":"👌&nbsp;","listText":"👌&nbsp;","text":"👌","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9000834955","repostId":1163497621,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":693751863,"gmtCreate":1640086295246,"gmtModify":1676532402471,"author":{"id":"4101717997433990","authorId":"4101717997433990","name":"Yukarin","avatar":"https://static.itradeup.com/news/6f67097733dd4047c9c17e8be9e7b300","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4101717997433990","idStr":"4101717997433990"},"htmlText":"nice","listText":"nice","text":"nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/693751863","repostId":1163497621,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":9000832762,"gmtCreate":1640084630021,"gmtModify":1676533500467,"author":{"id":"4095159210406790","authorId":"4095159210406790","name":"Sandman6624","avatar":"https://static.tigerbbs.com/59819e87e8c88e2f1a94acc3fed823dc","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4095159210406790","idStr":"4095159210406790"},"htmlText":"What about Donald Trump ? 🤔🤔🤔","listText":"What about Donald Trump ? 🤔🤔🤔","text":"What about Donald Trump ? 🤔🤔🤔","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9000832762","repostId":1163497621,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9000832531,"gmtCreate":1640084553253,"gmtModify":1676533500459,"author":{"id":"4088126420960140","authorId":"4088126420960140","name":"JcJc","avatar":"https://static.tigerbbs.com/3a18de000ce7013be088f3ab4082bd27","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4088126420960140","idStr":"4088126420960140"},"htmlText":"Wow","listText":"Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9000832531","repostId":1163497621,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":127,"commentSize":16,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 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