Posted on 05/13/2014 1:23:55 PM PDT by PieterCasparzen
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These days you can convert everything from real estate to private company stock to hedge fund shares into a charitable kitty. Moreover, depending on what you give, to what kind of charity and how you time your donation, you may get a much more valuable tax break than if you’d just given cash.
Example: Billionaire Facebook founder Mark Zuckerberg is funding his $100 million commitment to Newark, N.J. schools by donating stock to a supporting organization (a rich man’s donor-advised fund) at the Silicon Valley Community Foundation, a public charity. If he’d sold $100 million in Facebook shares and donated cash, Zuckerberg would have had $100 million in taxable capital gains (assuming he has a near-zero basis in the stock), plus a $100 million tax deduction–a wash. If he’d given $100 million in stock to a private foundation (meaning one Zuckerberg funds and controls himself ), he wouldn’t have had any taxable income, but the deduction would have been limited to his basis in the stock–zero. By giving private stock to a public charity, Zuckerberg gets the best of both worlds taxwise. He doesn’t recognize any income and he gets a $100 million deduction.
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When you donate publicly traded stock or funds that you’ve held for a year or more, you can deduct the securities’ full market value, without recognizing any income, avoiding not only a 15% federal capital gains tax but state capital gains taxes as high as 11%. Warning: Don’t donate shares until you’ve held them for more than a year, and don’t sell them yourself. Have your broker transfer them to a single charity; one of the national donor-advised funds associated with Fidelity, Vanguard, Schwab and other financial services companies; or to a fund at a local community foundation.
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(Excerpt) Read more at forbes.com ...
Yeah, that’s our biggest problem down here in the working and lower middle class, how we can give our money away!
This is brilliant. I’m going to donate some of my stocks to a fund that will buy more of my stocks to be re-donated. Just make sure you launder the money in a tax exempt charity.
That is pretty incredible. 100 million dollar donation. Good job!
You can also dig a big pit and burn $100 million ... or give it to government schools... same difference
I don’t have a billions of dollars and a hot wife.
I'm still working on one and gave up on the other. You decide which. Lol
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