Brady and wife got those shares in return for advertising for them, wonder if Larry David did as well. So they did not put up any actual money for the shares, but I imagine they can write the loss off on their taxes.
With a $25m yearly salary+bonus, that would be a useful write-off.
-—write the loss off? That might sting a little. A stock loss would be limited to 1,000$. If he made other stock gains, and sold, he could offset more, tho.
If you are paid $10 million in company stock as part of an advertising contract, you must pay taxes on it as if it was paid to you in cash.
If the value of the stock then goes to $0, then you have a $10 million loss that can only be written off against other capital gains. If you have no other capital gains, then you can only write off a maximum of $3,000 per year against your ordinary income.
So it’s possible that Tom Brady has paid several million dollars in income taxes for shares of stock that are worthless now.