There ARE several Musk tax sitautions brewing against a guy who is buddy …Buddy with the incoming President….
KEY TAKEAWAYS
- A Delaware court has upheld the decision to revoke Elon Musk’s massive Tesla pay deal.
- The deal was struck down on the grounds that Musk held undue influence over Tesla’s board.
- If the board is forced to reissue the package, Musk could owe as much as $73.5 billion in tax.
Tesla has been served another blow in its efforts to award CEO Elon Musk a massive pay package worth more than $129 billion at the firm’s current share price.
Although the firm has vowed to fight on, if it is forced to reissue the stock options, it could incur an eye-watering $73.5 billion tax bill plus additional accounting fees….
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The Largest Ever Federal Tax Bill
Whether he pays the 37 percent or 57 percent rate, Musk’s tax bill for the proposed package will likely be the largest in history—a title he already holds.
In 2021, CNBC estimated that the billionaire stood to pay $15 billion in state and federal taxes from selling Tesla shares. Musk himself later claimedthat he “paid the most taxes ever in history” that year…..
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For the third year in a row, Elon Musk’s charitable foundation did not give away enough of its money.
And it did not miss the mark by a small amount.
New tax filings show that the Musk Foundation fell $421 million short of the amount it was required to give away in 2023. Now, Mr. Musk has until the end of the year to distribute that money, or he will be required to pay a sizable penalty to the Internal Revenue Service.
Mr. Musk, in his new role as a leader of what President-elect Donald J. Trump is calling the Department of Government Efficiency, is promising to downsize and rearrange the entire federal government — including the I.R.S. But the tax records show he has struggled to meet a basic I.R.S. rule that is required of all charity leaders, no matter how small or big their foundations.
Mr. Musk’s is one of the biggest. His foundation has more than $9 billion in assets, including millions of shares in Tesla, his electric vehicle company. By law, all private foundations must give away 5 percent of those assets every year. The aim is to ensure that wealthy donors like Mr. Musk use these organizations to help the public instead of simply benefiting from the tax deductions they are afforded.
Mr. Musk’s group has fallen further and further behind. In 2021, his foundation was $41 million short, then $234 million the following year. Now, the hole is deeper still.
Private foundations do have a way to solve the problem if they do not give away enough money. They can distribute more the following year as a make-good. Mr. Musk could choose to do so in 2024.
Mr. Musk did not respond to requests for comment. His foundation, which is required to make its tax filings public, provided the 2023 document to The New York Times.
The I.R.S. appears to be among Mr. Musk’s early targets as a leader of Mr. Trump’s government efficiency initiative. The tax agency serves as the federal government’s charity regulator and thus oversees Mr. Musk’s foundation….
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