Zuckerberg charity thing...

avatar33

avatar33

e-Hustler
Dec 5, 2009
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So you've all seen that announcement from Zuckerberg saying he'll donate 99% of his shares to charity... which is a clever way to phrase it, since he's not exactly "giving it away" but creating his own LLC called Chan Zuckerberg which will control that money.

Now, people are saying that doing it this way allows him to save billions on taxes, is that true? How does that work in the US exactly? Do charities get a tax-free status like the United Nations? Can Zuckerberg get tax-free dividends from his charity?

Disqus plz
 


Heard about it but don't know how it works in the US. If it would work like you described it, then I foresee many new charities in the future.

On the other hand, if it would be that easy, then other major corps would have done it already. Or am I wrong?
 
avatar33 said:
So you've all seen that announcement from Zuckerberg saying he'll donate 99% of his shares to charity... which is a clever way to phrase it, since he's not exactly "giving it away" but creating his own LLC called Chan Zuckerberg which will control that money.

Now, people are saying that doing it this way allows him to save billions on taxes, is that true? How does that work in the US exactly? Do charities get a tax-free status like the United Nations? Can Zuckerberg get tax-free dividends from his charity?

Disqus plz
Click to expand...


This is definitely not the typical charity structure. Most are set-up as a foundation or trust for the tax-exempt status. For example, Bill & Melinda Gates Foundation created two entities (a foundation and a trust).

This is a pretty good summary of it. I think Zuckerberg will definitely see some tax benefits but I believe the main reason they set it up as an LLC is to have more control and flexibility of the money.

Mark Zuckerberg's unusual method of charitable giving

So why don't more rich people use LLCs for charity?

The main reason is taxes. LLCs aren't normally granted tax-exempt status. And most rich donors want the income tax exemption. But Zuckerberg's adjusted gross income is modest — his official salary last year was $1. And since charitable deductions typically are capped at 20 percent of adjusted gross income, Zuckerberg could never use the full tax deduction he would get for his billions in charitable giving.

The big tax question, which remains unanswered, is whether the Zuckerbergs will be able to exempt their $45 billion from estate taxes and gift taxes. Typically, if a rich donor fully controls the assets in an LLC, it's counted as part of their estate.

But estate tax attorneys say the Zuckerbergs likely may have found a way to exclude it from their estate.

"I'd be surprised if he and his attorneys made this pledge without any tax benefit," said one attorney. "But it would have involved some creative structuring."
Click to expand...
 
Jake232 said:
I'm pretty sure doing it with this structure wasn't his idea; more likely his accountant and lawyer team.
Click to expand...

This, bitches.

He truly commited to success, unlike you limp-dick paying for bullshit Vadym-looking motherfuckers,

That is all, lol.

Oh, and Hai Guys! Happy Festivus!!
 
Zuckerberg is a joke. Lucky for him he had the right connections when making something that tons of other people were also doing at the same time.
 
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