11–20 of 118 posts
Its sad to see how these comments are going focus on this being a tax dodge. He is doing SOMETHING with 99% of his money for the greater good.
Its sad to see how these comments are going focus on this being a tax dodge. He is doing SOMETHING with 99% of his money for the greater good.
Not necessarily. He has just moved it around. He is ANNOUNCING he will do something good. He could use all the money to bankroll candidates or invest in for-profit companies. Nothing has changed yet except that he can avoid estate taxes. He however has said he will do something "good".
The only "avoidance" of taxes happening here is during the initial transaction of transferring the Facebook shares to the LLC's ownership. Of course as the LLC sells shares that have gained value, the capital gain would be taxed, as would any dividends or growth from any other investments the LLC makes.
I don't blame him after what happened in New Jersey.
What happened in New Jersey was that Mark was naive.
Its sad to see how these comments are going focus on this being a tax dodge. He is doing SOMETHING with 99% of his money for the greater good.
In some ways, yeah, but viewed in another light, it's sad to see the tax code so ridiculously complex and catering to the rich that a guy like Zuckerberg or Romney can effectively pay a lower tax rate on investments than a working-class citizen would pay on their direct wages. Sometimes there needs to be a 'poster child' to focus on as an example of when even doing something admirable leaves a bad taste in the mouths…
By putting money in the LLC he can avoid estate taxes and still give his family control if he wants. >To sum up, his money is not going to a charity, but to his own LLC, which will let him evade tax by moving his private assets into a foundation. >Unlike a charitable trust, which is compelled to spend its money on charity, Chan Zuckerberg Initiative, LLC will be able to spend its money on whatever it wants, including…
Its sad to see how these comments are going focus on this being a tax dodge. He is doing SOMETHING with 99% of his money for the greater good.
By putting money in the LLC he can avoid estate taxes and still give his family control if he wants. >To sum up, his money is not going to a charity, but to his own LLC, which will let him evade tax by moving his private assets into a foundation. >Unlike a charitable trust, which is compelled to spend its money on charity, Chan Zuckerberg Initiative, LLC will be able to spend its money on whatever it wants, including…
So all one needs to do to avoid estate taxes is put the money in an LLC, and then transfer ownership of the LLC after death? That sounds absurd! Given that it takes some few thousand to create an LLC, any rich person can avoid tax this way!
By putting money in the LLC he can avoid estate taxes and still give his family control if he wants. >To sum up, his money is not going to a charity, but to his own LLC, which will let him evade tax by moving his private assets into a foundation. >Unlike a charitable trust, which is compelled to spend its money on charity, Chan Zuckerberg Initiative, LLC will be able to spend its money on whatever it wants, including…
I don't see how this is a problem. He's following the law and organizing his affairs to retain control of the money he earned. You aren't less of a citizen because you try to not pay more tax than you owe. The exemptions for certain types of income are put there because the legislature wants to promote certain activities as beneficial to the public good. Charitable Remainder Trusts are one of those things written int…
By putting money in the LLC he can avoid estate taxes and still give his family control if he wants. >To sum up, his money is not going to a charity, but to his own LLC, which will let him evade tax by moving his private assets into a foundation. >Unlike a charitable trust, which is compelled to spend its money on charity, Chan Zuckerberg Initiative, LLC will be able to spend its money on whatever it wants, including…
> Mark will deduct the fair value of his gift to his foundation from his taxable income in the year he makes the donation.
No he won't. The new foundation is an LLC, not a charitable foundation, so he's not eligible to take a tax deduction on it. And even if he was -
1. Giving away 99% of your wealth to save tax on the income from the other 1% is a really dumb way to save money, and
2. They don't have very much taxable income anway - just their salaries, and any capital gains they realise if they sell any Facebook stock.
> Mark Zuckerberg will transfer ownership of his Facebook stock without paying capital gains taxes.
Well, yes - you pay capital gains taxes when you sell something and realise a profit. Since he is not selling his shares, he is not realising a profit, and therefore is not liable to pay taxes on them. Nothing wrong with that!
I don't blame him after what happened in New Jersey.
What happened in New Jersey was that Mark was naive.