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What a big "gift". It is obvious he need ways to avoid paying taxes after selling so many shares of Tesla.

by coliveira 4y ago

deleted 4y ago
[deleted]
hef19898 4y ago
Once the banks behind the Twitter acquisition want their money back, the tax problem will go away...
93po 4y ago
Avoiding paying taxes by spending even more money that he can no longer use for himself? There is no way to financially come out ahead by donating to charity.
- coliveira 4y ago
  You didn't think this through. There is little charity in a private foundation: besides the immediate tax breaks the billionaires receive, the foundation is required to spend only 5% of its endowment on things that are remotely related to charity. The rest of the money is used like always: to buy assets, like stocks. These assets are in practice still controlled by the owner of the foundation. For example, Gates has for decades used his billions to invest in biotech that will ultimately benefit his personal investments. And I'm not event talking about the political power you can buy with your "charity giveaways".
  - 93po 4y ago
    Let me get this straight. Elon donated $6 billion in Tesla shares to his non-profit... so that his non-profit could buy Tesla shares to prop up his stock price? This makes zero sense.
    - coliveira 4y ago
      He will get a tax break and he doesn't even need to sell the shares immediately. And he still controls the shares through the foundation, just for starters. Don't you think this is a sweet deal? Every aspect of the "charity foundation" created by billionaires is designed to benefit them the most. If I told you that you can control your wealth, diversify your holdings, and pay only 5% of assets per year (in the way you personally decide) instead of 15%, 20%, or 25% in taxes, would you think it is a good or bad deal?
      - 93po 4y ago
        Controlling the shares through the non-profit means nothing. He has control even without those shares, and the only difference is that they're now permanently gone as an option to sell and profit off of. You still call this "controlling your wealth" but it's literally the opposite - that $6 billion is now extremely limited in what it can do now in terms of selfish goals.
        coliveira 4y ago
        Incorrect. Elon still controls everything he puts on his foundation, and when he's gone he will appoint people to control it. That is a fact. He can still sell those shares (without paying taxes) and diversify his holdings if necessary. He can invest in other companies using that money to help him achieve his goals. It is just a bunch of money that he can control in several ways. You just don't have great imagination, but Elon and his lawyers know what is possible.

What a big "gift". It is obvious he need ways to avoid paying taxes after selling so many shares of Tesla.

deleted 4y ago

[deleted]

hef19898 4y ago

Once the banks behind the Twitter acquisition want their money back, the tax problem will go away...

93po 4y ago

Avoiding paying taxes by spending even more money that he can no longer use for himself? There is no way to financially come out ahead by donating to charity.

coliveira 4y ago
You didn't think this through. There is little charity in a private foundation: besides the immediate tax breaks the billionaires receive, the foundation is required to spend only 5% of its endowment on things that are remotely related to charity. The rest of the money is used like always: to buy assets, like stocks. These assets are in practice still controlled by the owner of the foundation. For example, Gates has for decades used his billions to invest in biotech that will ultimately benefit his personal investments. And I'm not event talking about the political power you can buy with your "charity giveaways".
- 93po 4y ago
  Let me get this straight. Elon donated $6 billion in Tesla shares to his non-profit... so that his non-profit could buy Tesla shares to prop up his stock price? This makes zero sense.
  - coliveira 4y ago
    He will get a tax break and he doesn't even need to sell the shares immediately. And he still controls the shares through the foundation, just for starters. Don't you think this is a sweet deal? Every aspect of the "charity foundation" created by billionaires is designed to benefit them the most. If I told you that you can control your wealth, diversify your holdings, and pay only 5% of assets per year (in the way you personally decide) instead of 15%, 20%, or 25% in taxes, would you think it is a good or bad deal?
    - 93po 4y ago
      Controlling the shares through the non-profit means nothing. He has control even without those shares, and the only difference is that they're now permanently gone as an option to sell and profit off of. You still call this "controlling your wealth" but it's literally the opposite - that $6 billion is now extremely limited in what it can do now in terms of selfish goals.
      - coliveira 4y ago
        Incorrect. Elon still controls everything he puts on his foundation, and when he's gone he will appoint people to control it. That is a fact. He can still sell those shares (without paying taxes) and diversify his holdings if necessary. He can invest in other companies using that money to help him achieve his goals. It is just a bunch of money that he can control in several ways. You just don't have great imagination, but Elon and his lawyers know what is possible.