Zuckerberg Selling Facebook Shares to Pay Off Hefty Tax Bill

Limited-Time Savings: 60% Off of Our Social Media Books

Use code SOCIAL2021 through 5/27/21 to get these books, for less.
Former Editorial Director at Entrepreneur Media
1 min read

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).

More from Entrepreneur
Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs

Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.

Make sure you’re covered if an employee gets injured at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur