2 ms·

Actually, I'm going to make this a top-level comment. Would one of the people claiming that she's just doing it for the tax benefits please explain to me, in e

Actually, I'm going to make this a top-level comment. Would one of the people claiming that she's just doing it for the tax benefits please explain to me, in excruciating detail, just how you would legally end up with more money by donating billions?

alisonkisk 5y ago
By donating appreciated stock, you can deduct it from income, twice. So approximately, if someone donates half their wealth she'll pay 0 income tax, which may be more than her tax burden on the whole amount. Getting this exactly accurate requires detailed accounting, as well as tax sheltering, deductible spending on first class travel as part of her charitable work, deductible payments to children and the value of buying favors and making her personal brand marketable, etc.
- solveit 5y ago
  Granting your premise that you can pay zero tax by donating half your wealth (which I'm guessing assumes you have zero cost basis for your assets), wouldn't that still leave you with... half your money? It doesn't seem worth it unless you're paying 50% in income/capital gains/whatever tax.
kolbe 5y ago
Firstly, you should specify what it means to have “more money.” For one, her wealth is (to an approximation) all Amazon stock at a zero basis. She can’t spend Amazon stock, so in reality, she doesn’t have the amount of money that say Forbes claims she has. She has a massive tax lability before she can turn this wealth into money. So, you should be asking “how does this minimize her net monetary position after liquidating Amazon stock?” To that, I don’t think it’s true. Yes, she can “double count” the donation, but that would require her taxes be over 50% to come out ahead. Given she has mostly zero basis long term cap gains, I don’t think she’s even close to that rate.

2 ms·

Actually, I'm going to make this a top-level comment. Would one of the people claiming that she's just doing it for the tax benefits please explain to me, in e

by solveit 5y ago

alisonkisk 5y ago
By donating appreciated stock, you can deduct it from income, twice. So approximately, if someone donates half their wealth she'll pay 0 income tax, which may be more than her tax burden on the whole amount. Getting this exactly accurate requires detailed accounting, as well as tax sheltering, deductible spending on first class travel as part of her charitable work, deductible payments to children and the value of buying favors and making her personal brand marketable, etc.
- solveit 5y ago
  Granting your premise that you can pay zero tax by donating half your wealth (which I'm guessing assumes you have zero cost basis for your assets), wouldn't that still leave you with... half your money? It doesn't seem worth it unless you're paying 50% in income/capital gains/whatever tax.
kolbe 5y ago
Firstly, you should specify what it means to have “more money.” For one, her wealth is (to an approximation) all Amazon stock at a zero basis. She can’t spend Amazon stock, so in reality, she doesn’t have the amount of money that say Forbes claims she has. She has a massive tax lability before she can turn this wealth into money. So, you should be asking “how does this minimize her net monetary position after liquidating Amazon stock?” To that, I don’t think it’s true. Yes, she can “double count” the donation, but that would require her taxes be over 50% to come out ahead. Given she has mostly zero basis long term cap gains, I don’t think she’s even close to that rate.