Re:Dilution vs. Risk taking: Capital gains taxes and entrepr...
by odie5533 on Saturday November 29, 2025 @07:36PM
(#46092297)
The taxes would be refundable.
[ Parent
| on HN ]
Re:Dilution vs. Risk taking: Capital gains taxes and entrepr...
by ENGNR on Saturday November 29, 2025 @08:17PM
(#46092571)
How does that work in practice?
If you're bootstrapped, borrow a bunch of money to pay tax because your company got to $10M val. But then the market shifts and it goes back down to $0 in later years, do you get the money back?
Even if you do, it sounds weird taxing someone for the right to create something, especially when they're still in the middle of creating it.
Re:Dilution vs. Risk taking: Capital gains taxes and entrepr...
by jjmarr on Saturday November 29, 2025 @09:01PM
(#46092850)
Yes, you do get the money back, that's the point of the paper.
This is better for many founders that otherwise wouldn't cash out at all. VCs will be forced to cover your unrealized capital gains taxes.
Re:Dilution vs. Risk taking: Capital gains taxes and entrepr...
by anonymousiam on Saturday November 29, 2025 @08:03PM
(#46092474)
Would they pay interest?