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If anything, this transaction will actually result in more taxes being levied than if he had transferred it to a foundation. There still will be capital gains t
by jayess 11y ago
If anything, this transaction will actually result in more taxes being levied than if he had transferred it to a foundation. There still will be capital gains tax when the LLC sells Facebook shares. It will pay income tax on any dividends. Any investments it makes will similarly be treated. There will be no estate tax dodge. The LLC will be valued at the value of its assets at the death of the last spouse and estate tax will be levied at 40% on that value.
Please, someone, tell me how this is a tax dodge.
- adventured 11y agoThere's no scenario under which this is a tax dodge. A charitable foundation would have been superior when it comes to limiting taxes. People ignorant of LLCs and the tax code are the only ones claiming this is a tax dodge, it's an easy smear because so few understand said tax code.