Trump Administration Weighs Stock Gifts to Trump Accounts for 25 Million Kids as Tax Breaks Double
Updated
Updated · CNBC · May 14
Trump Administration Weighs Stock Gifts to Trump Accounts for 25 Million Kids as Tax Breaks Double
4 articles · Updated · CNBC · May 14
$6.25 billion already pledged by Michael and Susan Dell could become more tax-efficient if Trump Accounts are opened to stock donations instead of cash only.
Appreciated shares would let donors avoid capital-gains tax and deduct fair-market value against income, creating a double benefit similar to donor-advised funds and other charitable vehicles.
30% of adjusted gross income would still likely cap income-tax deductions for long-term appreciated property, though estate and gift tax deductions remain unlimited and especially valuable to the ultra-wealthy.
Treasury and tax lawyers are split on whether the change needs Congress, agency guidance or an executive order, and any broader expansion of donor tax breaks faces a tough path with Republicans' razor-thin majority.
How will allowing stock donations truly impact the wealth gap for the next generation of American children?
Can the government build a stock donation system for child accounts that rivals private donor-advised funds?
Could this new savings plan unintentionally divert billions in donations away from traditional non-profit organizations?