ElGuiri on Nostr: I've seen a little discussion on the tax on unrealised gains. It sounds like a horror ...

I've seen a little discussion on the tax on unrealised gains. It sounds like a horror show for sure but I can attest to the fact that it's MUCH worse when it actually happens to you.

Set up company with some friends, get my ideas coded into a piece of software. Launch, not quite success but eventually sell. Deal is part shares, part cash and the purchaser wanted us truly vested in. I went 60% cash / 40% shares. Shares are in a private company and cannot be sold.

When I came round to tax time, my accountant informs me I have to pay tax on the full amount (i.e unrealised gains) and it was in Spain so top rate 45%. Should take too much to figure out I wasted years of my life setting up a tech company only for the government to take everything off me. I still have those shares I suppose and one day, maybe I'll be able to sell them, who knows? At least am not in Spain any more cause guess what? If I could sell them, and I lived in Spain, I'd pay tax again on that.

If they tax unrealised gains, 1929 market crash will look like a sunday picnic. In the mean time, if you are an entrepeneur, make sure to take a little time to check all the fine details in local tax code or you might be working ONLY to pay the salary of some public sector thief!

#tax #economics