Say what you will about Facebook but Mark Zuckerberg is a pretty bright fellow. Some highlights.
Story here
Sovereignman said:In an open letter to his newborn daughter, Mark and his wife explained how many problems are out there. War. Disease. Bigotry. Etc. Like any parent, they want their child to grow up in a better world. And they outlined their vision to make this happen, including taking risks and making long-term investments, building technology, and backing strong, independent leaders and visionaries.
This sounds conspicuously like the mission statement for any number of high-end Silicon Valley venture capital firms. In a way, this is what the Zuckerbergs have created. At the end of the letter, they pledge to contribute 99% of their Facebook shares, currently worth about $45 billion, to “advance this mission”.
Sovereignman said:The Zuckerbergs formed a limited liability company (LLC). The Chan Zuckerberg Initiative is a for-profit, privately held vehicle that’s intended to make investments that will advance their vision. Over the course of their lives, they’ll transfer Facebook shares to the LLC. But as that transfer is considered a donation, the Zuckerbergs will be able to completely eliminate capital gains tax from their Facebook shares. Plus they’ll be able to shield billions of dollars of other income from tax by writing off the donation as a charitable contribution.
Sovereignman said:Perhaps the biggest benefit is that the Facebook shares could now entirely avoid US federal estate tax. At the end of the day, Mr. Zuckerberg gets to retain -control- of his fortune and shares, directing funds as he sees fit into for-profit, private investments, while drastically reducing his tax bill.
Story here