What wealthy donors gain if 'Trump Accounts' allow stock donations
CNBC • • business
Key Points:
- The Trump administration is considering allowing stock donations to "Trump Accounts," which currently only accept cash contributions, potentially expanding tax benefits for donors.
- Allowing stock donations would enable donors to avoid capital gains tax on appreciated shares while deducting the fair-market value, similar to benefits seen with donor-advised funds.
- The change could motivate ultra-wealthy donors, like Michael and Susan Dell who pledged $6.25 billion, as much of their wealth is held in appreciated stock with unrealized gains.
- Experts note that while this practice is not new and tax benefits are subject to existing caps, allowing stock donations could help reduce estate tax burdens for the super-rich.
- It remains unclear if legislative action is required to implement this change, and expanding tax benefits for Trump Account donors may face challenges in Congress given the narrow Republican majority.