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0 pointsprepend4y ago0 comments

Tesla employees lots of people who pay income tax.

Capital gains is taxed on the residence at time of sale, not time of purchase. So if Musk sells when he’s not a resident of CA, he won’t pay CA taxes.

0 comments

dmitrygr4y ago

CA already came up with a convoluted way to tax even that: https://www.upstartwealth.com/blog/will-you-owe-ca-tax-after...

And yes indeed, the taxable event is vesting, it indeed happens outside of ca, and yes CA still intends to tax you! They will even come after you in another state for it, after you permanently move out.

!!!

AmericanChopper4y ago

Isn’t any equity he is awarded for the period of work he did as a tax resident of California, taxable in California, regardless of whether those gains are realized today or in 20 years?

brianwawok4y ago

Equity is taxed on sale. He will never sell it. He will give it to a bank and take a loan against it. When he dies bank can sell it and pay itself back.

AmericanChopper4y ago

I really don’t think this is true. Being granted the stock is a taxable event, even if you don’t liquidate any of it, and even if that means you have to sell some to pay the taxes.

Also, the methodology you’ve described for avoiding taxes is used to benefit from offshore holdings, not avoid paying taxes on locally held assets.

1 more reply

sjg0074y ago

He will pay gains on where the stock vested. So CA in this case.

outside12344y ago

That's not actually true - California will probably consider this California income because he earned it while in California.

deadmutex4y ago

Are you a tax lawyer by any chance? or is this just guessing?

KingMachiavelli4y ago

This is somewhat unique to CA but it was in the news recently.

https://www.sambrotman.com/personal-income-tax-residency-cal...

https://www.ftb.ca.gov/forms/misc/1004.html

holler4y ago

I know people who have been harassed by CA franchise tax board many years after leaving the state, and had to prove they had left.

1 more reply

paxys4y ago

Nope. CA taxes you on the shares you earned in the state, regardless of where you sold it.

8note4y ago

They don't tax it at the time you recieved the shares?

paxys4y ago

Depending on the grant type receiving it might not be a taxable event. And even otherwise, in a lot of cases the majority of income is realized in the form of capital gains.

j / k navigate · click thread line to collapse

0 comments

dmitrygr4y ago

CA already came up with a convoluted way to tax even that: https://www.upstartwealth.com/blog/will-you-owe-ca-tax-after...

!!!

AmericanChopper4y ago

Isn’t any equity he is awarded for the period of work he did as a tax resident of California, taxable in California, regardless of whether those gains are realized today or in 20 years?

brianwawok4y ago

Equity is taxed on sale. He will never sell it. He will give it to a bank and take a loan against it. When he dies bank can sell it and pay itself back.

AmericanChopper4y ago

I really don’t think this is true. Being granted the stock is a taxable event, even if you don’t liquidate any of it, and even if that means you have to sell some to pay the taxes.

Also, the methodology you’ve described for avoiding taxes is used to benefit from offshore holdings, not avoid paying taxes on locally held assets.

1 more reply

sjg0074y ago

He will pay gains on where the stock vested. So CA in this case.

outside12344y ago

That's not actually true - California will probably consider this California income because he earned it while in California.

deadmutex4y ago

Are you a tax lawyer by any chance? or is this just guessing?

KingMachiavelli4y ago

This is somewhat unique to CA but it was in the news recently.

https://www.sambrotman.com/personal-income-tax-residency-cal...

https://www.ftb.ca.gov/forms/misc/1004.html

holler4y ago

I know people who have been harassed by CA franchise tax board many years after leaving the state, and had to prove they had left.

1 more reply

paxys4y ago

Nope. CA taxes you on the shares you earned in the state, regardless of where you sold it.

8note4y ago

They don't tax it at the time you recieved the shares?

paxys4y ago

Depending on the grant type receiving it might not be a taxable event. And even otherwise, in a lot of cases the majority of income is realized in the form of capital gains.

j / k navigate · click thread line to collapse