Elon Musk says he will pay over $11 billion in taxes this year

Musk recently sold 10% of his Tesla stock to pay capital gains tax on a stock option

Elon Musk faces a hefty tax bill this year — possibly the biggest in U.S. history.

“For those wondering, I will pay over $11 billion in taxes this year,” the Tesla CEO tweeted on Monday.

Musk has sold off $14 billion worth of Tesla stock since early November, after asking his followers in a Twitter poll if he should sell 10% of his holdings. The response to that poll was a resounding “yes.”

But it’s likely Musk would have begun selling anyway. That’s because he faces a massive tax bill on Tesla stock options.

Stock options Musk was awarded in 2012 are set to expire in August next year. In order to exercise them, he has to pay income tax on the gain.

Rather than take a salary or cash bonus, Musk’s wealth comes from stock awards and gains in Tesla’s share price.

Source: CNBC Submitted by Ball Peen Hammer