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Well, it might be a better investment to hang on to the shares, but it's not tax advantageous when either way results in 15% tax. His charitable activities don'
by mattmaroon 18y ago
Well, it might be a better investment to hang on to the shares, but it's not tax advantageous when either way results in 15% tax. His charitable activities don't lower his personal tax, they lower his wealth.
Giving most of your money to charity doesn't make economic sense form anyone's point of view, and I don't think Microsoft's dividend was in any way designed to save Bill money. It was done because a company only needs so much cash on hand.
- anamax 18y agoCharitable donations definitely reduce taxes paid via the relevant deduction - that effectively shields income from being taxed. If you donate stock held for longer than a year, you can deduct the full market value. According to http://money.cnn.com/2001/12/07/taxes/q_appreciated/index.htm http://money.cnn.com/2001/12/07/taxes/q_appreciated/index.ht... the deduction goes against ordinary income, which is taxed at a much higher rate than long term capital gains.
- deleted 18y ago[deleted]