Mark Zuckerberg may be having the best week ever. Despite Facebook's great financial gains in 2012--it made about $1 billion in profits--the company will pay no federal or state taxes. Instead, the tech giant is set to receive a return of $429 million. What's more, Facebook will receive $3 Billion in tax breaks over the course of the next few years.
According to Fox News, this is due to employees cashing in their stock options. In doing so, the government treats this as wages and Facebook gets a sizable deduction in return.
"The employees cash in stock options, and at that point there is tax deduction for the company. Usually it doesn’t wipe out companies whole tax bill, although many companies get big breaks from it," said Robert McIntyre, a representative from Citizens for Tax Justice
[via BGR]
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