3 ms·
It's at least little bit fishy that you can get a $500 million deduction for giving away stock that is never worth $500 million to anyone (since giving it away
by hundt 8y ago
It's at least little bit fishy that you can get a $500 million deduction for giving away stock that is never worth $500 million to anyone (since giving it away tanked the sale price, and selling it would presumably drive it down even farther).
Of course the main reason for that is other parts of the tax code, not DAFs. But I think DAFs get targeted for criticism because they make it a lot easier to exploit these kinds of flaws.
- deleted 8y ago[deleted]
- wgjordan 8y ago> It's at least little bit fishy that you can get a $500 million deduction for giving away stock that is never worth $500 million to anyone (since giving it away tanked the sale price, and selling it would presumably drive it down even farther). I'm not entirely sure you can, based on my reading of 26 CFR 1.170A-1(c)(3) [1]: > (3) If a donor makes a charitable contribution of property, such as stock in trade, at a time when he could not reasonably have been expected to realize its usual selling price, the value of the gift is not the usual selling price but is the amount for which the quantity of property contributed would have been sold by the donor at the time of the contribution. [1] https://www.law.cornell.edu/cfr/text/26/1.170A-1 https://www.law.cornell.edu/cfr/text/26/1.170A-1
- hundt 8y agoExcellent point. I responded to your other comment on this thread.