The Washington Post

IRS to Zuck: Nice IPO, bro! That’ll be $1 billion

As the fella says in the classic musical Singin’ in the Rain: You got the fame, you gotta take the little heartaches that go along with it.

Facebook CEO Mark Zuckerberg’s got the fame. He’s a household name and an Andy Samberg character. He also made around $13 billion in his company’s initial public offering last year.

Now for the little heartache: A tax bill for one. Billion. Dollars.

When reached for comment, Zuckerberg told VentureBeat, “This suuuuucks.”*

*Just kidding. That never happened. But a panel of California CPAs did tell CNNMoney that the entrepreneur’s capital gains bill will probably be around $1.1 billion.

But ungodly tax bills aside, the guy gets to keep roughly $12 billion of his paper fortune — and a controlling percentage of votes on Facebook’s board.

And we are 100 percent certain that Zuck and his army of financial professionals have been preparing for the pitfalls of new wealth since long before the IPO. In fact, Zuckerberg sold around $1 billion in shares on the day of Facebook’s IPO, likely in preparation for the tax bill that was to come.

The young CEO also makes a fair amount of charitable contributions, which, though we’re sure they come from the best intentions, probably help to offset his tax bill. Example: The half-billion donation he made at the end of last year.

Copyright 2013, VentureBeat



Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Show Comments
Most Read



Success! Check your inbox for details.

See all newsletters

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.