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It's an LLC, isn't it? That means that the LLC will pay capital gains tax when the stock is sold. The government gets its money either way. The estate planni

It's an LLC, isn't it? That means that the LLC will pay capital gains tax when the stock is sold. The government gets its money either way. The estate planning part is more complex, I'm not qualified to answer that, but even in that article the linked option basically talks about how you can get a 40% discount on the value, but the estate tax basically kicks in regardless once you transfer LLC shares to your kids. So it's not quite as cut-and-dried as saying, "Zuckerberg just robbed the treasury of $45b"

mikeryan 11y ago
No the loopholes is that if the LLC donates the appreciated shares to charity it will get a deduction of the fair market value. However if a tax-exempt entity (Charity) then sells the stock it does not pay capital gains.
- csmajorfive 11y ago
  The same is true if he donates the shares directly without going through an LLC.
  - mikeryan 11y ago
    But then the money doesn't get the protections and shelter as part of the LLC which may very well likely invest as a for-profit entity. In other words there are other reasons to create the LLC that aren't about avoiding taxes. And my point still stands this way there is no capital gains paid [edit] on shares donated to charities. Yes there may be taxes paid on shares donated to for-profit entities or liquidated by the LLC. There's multiple scenarios here my capital gains comments only refers to donations of shares directly to a non-taxable entity.
    - deleted 11y ago
      [deleted]
    - cdcarter 11y ago
      If any of the shares the LLC holds are donated to a public charity, there will be no tax implications for the LLC, as if Z donated the shares directly or operated a private foundation, and without any of the freedoms of the LLC. If any of the shares the LLC holds are liquidated by the LLC or granted to for-profits, situations where the "other reasons to create the LLC" are in effect, capital gains tax WILL be owed. The LLC is as if he held the shares personally, when it comes to capital gains. The estate situation is very different, not cut and dry, and that's what is being discussed in this article.

mikeryan 11y ago

No the loopholes is that if the LLC donates the appreciated shares to charity it will get a deduction of the fair market value. However if a tax-exempt entity (Charity) then sells the stock it does not pay capital gains.

csmajorfive 11y ago
The same is true if he donates the shares directly without going through an LLC.
- mikeryan 11y ago
  But then the money doesn't get the protections and shelter as part of the LLC which may very well likely invest as a for-profit entity. In other words there are other reasons to create the LLC that aren't about avoiding taxes. And my point still stands this way there is no capital gains paid [edit] on shares donated to charities. Yes there may be taxes paid on shares donated to for-profit entities or liquidated by the LLC. There's multiple scenarios here my capital gains comments only refers to donations of shares directly to a non-taxable entity.
  - deleted 11y ago
    [deleted]
  - cdcarter 11y ago
    If any of the shares the LLC holds are donated to a public charity, there will be no tax implications for the LLC, as if Z donated the shares directly or operated a private foundation, and without any of the freedoms of the LLC. If any of the shares the LLC holds are liquidated by the LLC or granted to for-profits, situations where the "other reasons to create the LLC" are in effect, capital gains tax WILL be owed. The LLC is as if he held the shares personally, when it comes to capital gains. The estate situation is very different, not cut and dry, and that's what is being discussed in this article.