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"The federal tax code allows you to contribute long-term appreciated securities—such as stocks, bonds, and mutual fund shares—directly to a charity without payi
by devoutsalsa 5y ago
"The federal tax code allows you to contribute long-term appreciated securities—such as stocks, bonds, and mutual fund shares—directly to a charity without paying capital gains tax on the appreciated value, as you would if you sold it first and then contributed cash to the charity." [1]
[1] https://www.fidelity.com/viewpoints/personal-finance/tax-breaks-for-charitable-giving https://www.fidelity.com/viewpoints/personal-finance/tax-bre...
- wtracy 5y agoSure the donation isn't taxed, but why wouldn't the original (fraudulent) sale be taxed? Selling an item at auction and buying it yourself isn't exactly a charitable contribution.
- devoutsalsa 5y agoYou don't pay (an income or capital gains) tax when you buy something. Only when you sell it. Maybe there's some other tax, like VAT or luxury or sales that are all based on the purchase price.
- MagnumOpus 5y agoYou can of course donate $20 mil to a charity that you can influence (a foundation of a relative or a friend’s family, say) and get that charity to buy the first painting at auction. This way you pay cap gains on 19 million but can offset 20 million of charity donations against the gain.