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What does Elon Musk live on?

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Bouleversee
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What does Elon Musk live on?

#456560

Postby Bouleversee » November 8th, 2021, 3:20 pm

He says he doesn't draw an income from Tesla and they don't pay any dividends and he doesn't pay tax, so what does he live on? He does own umpteen properties and possibly lets them but that would surely produce a taxable income, so presumably it can't be rental income? It's scandalous really that someone with so much wealth pays no tax and I can quite understand that Twitter users said he should sell a tranche of his Tesla shares to reduce world hunger. It wouldn't do much for the share price, however, not that I own any directly.

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Re: What does Elon Musk live on?

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Postby swill453 » November 8th, 2021, 3:25 pm

For someone with personal wealth in the tens or hundreds of $billions, the concepts of "no income" and "no tax" probably aren't as literally true for them as they would be for the rest of us. His accountants will deal with it and not bother him with the trivia.

Scott.

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Re: What does Elon Musk live on?

#456578

Postby redsturgeon » November 8th, 2021, 4:13 pm


PhaseThree

Re: What does Elon Musk live on?

#456594

Postby PhaseThree » November 8th, 2021, 5:30 pm

He made $165 million when he sold Paypal in 2002, He may have a few quid lying around still from that.
He has also reportedly sold off most/all of his houses and is currently living in a pre-fab on the Space-X site. I imagine this generated enough spare cash to keep him going for a year or so.
https://www.forbes.com/sites/sergeikleb ... ea61e04332

Bouleversee
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Re: What does Elon Musk live on?

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Postby Bouleversee » November 8th, 2021, 7:19 pm

So what happened to all the cash if it's not producing a taxable income? No room to keep it in his present box. No room for his family either. What a strange character he is.

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Re: What does Elon Musk live on?

#456681

Postby Hallucigenia » November 8th, 2021, 11:06 pm

Bouleversee wrote:So what happened to all the cash if it's not producing a taxable income? No room to keep it in his present box. No room for his family either. What a strange character he is.


AIUI most of the Paypal cash went into starting Tesla and SpaceX etc. But it's fairly common for people in his position to borrow against his illiquid capital - it's a safe bet for the bank, the cost of the loan can be offset against income for tax purposes, and it allows him to have the cash in the jurisdiction of his choice. Michael Winner used to keep all his cash offshore, and then borrow against it in the UK.

See this for confirmation Musk is doing this :
https://thehill.com/changing-america/re ... w-tax-rate

Supposedly the main reason for the Twitter poll is because he needs quite a lot of billions in ready cash to pay the tax on some Tesla options that need to be exercised.

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Re: What does Elon Musk live on?

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Postby Urbandreamer » November 9th, 2021, 6:57 am

Bouleversee wrote:So what happened to all the cash if it's not producing a taxable income? No room to keep it in his present box. No room for his family either. What a strange character he is.


Apparently he doesn't have any cash. So much so that he has $500 mill of debt according to one thing that I read. He's good for it though.

Here is the reporting of his finances given to a court in 2018.
https://www.forbes.com/sites/noahkirsch ... f346d33f6e

He has also paid income tax in the past and I'm sure others like capital gains tax and purchase tax. He's just not paying income tax at the moment because he is not claiming his salary.

Here is a link to a more recent piece.
https://english.webdunia.com/article/ot ... 005_1.html
"Whether or not the world's wealthiest man pays any taxes at all shouldn't depend on the results of a Twitter poll," said Wyden.


I'm afraid that I disagree with the concept of that statement. People are not tax slaves. Singling out a group, in this case the rich, and arguing that they should have money taken because they are part of that group and for no other reason strikes me as morally wrong.

Besides which, the statement is wrong and possibly a lie. If Mr Musk buys things, ie cooked food, in the state where he is now living (Texas), then he will be paying tax to that state. Odd that Mr Wyden is not aware of this tax considering that he wants to extend it internet sellers.
https://www.wyden.senate.gov/issues/online-sales-tax


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