Join our Waitlist for Expert Advice!

Zuckerberg Selling Facebook Shares to Pay Off Hefty Tax Bill To exercise an option on 60 million Facebook shares, Mark Zuckerberg needs to raise $2.3 billion just to pay the IRS.

By Ray Hennessey Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Next time you kvetch to your accountant about how much you have to pay the IRS, think about how Mark Zuckerberg feels.

The Facebook founder is exercising an option he has to buy 60 million shares, valued at $3.33 billion, in his company. But, given how little he has to pay for those shares, he is going to face big taxes on the gains.

How much? Well, he has to turn around and sell 41,350,000 of those shares in a public offering, raising roughly $2.3 billion, just to pay his tax bill.

Zuckerberg will get a tax break in one regard: He is donating 18 million shares, valued at roughly $1 billion, to charity. One assumes that leads to a fairly healthy deduction (though, like more and more of us, no doubt he is subject to the AMT).

Ray Hennessey

Former Editorial Director at Entrepreneur Media

Ray Hennessey is the former editorial director of Entrepreneur.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.

Business News

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.

Business News

These 3 Side Hustles Make the Most Money While Working Fewer Hours, According to a New Survey

The survey also found that having a side hustle doubled as a path to becoming more employable.

Franchise

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.