So if the buyers are wonting to buy at a hype price, you have to pay a ton in taxes on unrealized gains meaning you need to sell stock to cover the cost, and pay taxes on the sell, then next year when evaluations go to normal levels you get to write off losses from zero income because you didn’t sell and want to keep your shares meaning you get noting back?
Sounds like a way to make sure no company every does an IPO.
I would say that they should just get taxed at what ever the price is on December 31 or January 01.
If you lose money you can claim it as a loss just as you would when you sell for a loss, up to a certain limit.
So if the buyers are wonting to buy at a hype price, you have to pay a ton in taxes on unrealized gains meaning you need to sell stock to cover the cost, and pay taxes on the sell, then next year when evaluations go to normal levels you get to write off losses from zero income because you didn’t sell and want to keep your shares meaning you get noting back?
Sounds like a way to make sure no company every does an IPO.