Facebook won't be paying any taxes, will enjoy a nice fat refund though

Facebook has made a nice $1.1 billion in profits since they went public, but they won't be paying an.

@anthony256
Published Mon, Feb 18 2013 4:38 AM CST   |   Updated Tue, Nov 3 2020 12:24 PM CST

Facebook have made $1.1 billion in profits since they've gone public, but they won't be paying any federal or state taxes on these profits. Better yet, the largest social network in the world will enjoy a very nice federal tax refund of around $429 million.

Facebook won't be paying any taxes, will enjoy a nice fat refund though | TweakTown.com

Before Facebook went public last year, Citizens for Tax Justice, a research group, said that this would happen, and have just released a breakdown of what the social network's crafty accounting skills have amounted to in their 2012 annual report. It all comes down to the tax deductibility on executive stock options, which Facebook gave plenty out of last year, with the deductible ended up actually being more than Facebook owed in taxes to the state, and federal governments.

This means that instead of Facebook having to pay anything to the government, the roles are reversed and the government will hand money over to Facebook - a refund nearing half a billion dollars. This refund comes from the taxes Facebook paid in 2010 and 2011. The good news doesn't stop for Facebook there, as they'll be carrying "forward another $2.17 billion in additional tax-option tax breaks for use in future years." This means that Facebook will, for as long as they can, continue to do this.

Not too bad for a social network that offers nearly everything for free.

NEWS SOURCE:gawker.com

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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