169 sats \ 3 replies \ @freetx 11 Apr \ parent \ on: History of Federal Tax Rates charts
A very big thing in 50s / 60s was "deferred compensation agreements". Basically reclassified salary into capital gains. Typically they would pay you a year later....so a small portion of your 1951 was paid to you then, then the bulk paid to you 12 months later...
Reclassifying salary as capital gains
Common in private equity and hedge funds
It’s similar to carried interest
Capital Gains Tax is capped at 20 percent today
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The keyword is deferral
Capital gains tax kicks in if you hold an asset for at least one year plus one day or 12 months plus 1 day
Otherwise it’s taxed as ordinary income.
Shohei Ohtani is deferring 680 million for at least 10 years lol
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Interesting. I don't think I had heard of that before.
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