Experts: Steve Jobs' Heirs Will Avoid Big Tax Bill if They Sell Company Shares
The tech visionary, who is survived by wife Laurene and their children, received an annual salary of only $1, with most of his wealth coming from Apple stock he owned.
NEW YORK - The heirs of Apple co-founder Steve Jobs, who owned about $2 billion of company stock, will avoid a big tax bill if they sell the stake right away, the New York Post reported Friday, citing tax experts.
Jobs, hailed as a visionary across Corporate America, including in entertainment circles, died Wednesday. He is survived by wife Laurene and their children.
Jobs only received an Apple salary of $1 a year as his compensation since his return to the CEO post in 1997 was focused on stock. When stock is transferred after a death, heirs declare them at the value at which they are trading at the time rather than at the value they had when they were originally awarded, according to the Post.
As a result, Jobs' heirs will pay taxes on the shares only if they sell them later for a higher price than when they received them and only on that rise in value, David Miller, an attorney at Cadwalader, Wickersham & Taft, told the paper.
Jobs held 5.5 million shares of Apple at the time of his death, most of which he received in 2006 when the stock was trading at $64.66, the Post said. The stock closed at $377.29 on Thursday.
The Post highlighted that Jobs also held $4.4 billion in Walt Disney shares.