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[deleted] t1_j8p5n0c wrote

Reply to comment by AdRelevant3167 in Elon Musk donates almost $2bn of Tesla shares to charity by Nergaal

[deleted]

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voyageur77 t1_j8sjzfy wrote

No, it's not. There are IRS rules that limit deducting donations to your own charity.

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AdRelevant3167 t1_j8p67gy wrote

What happens to the money in his own charity? You can’t just spend it on anything.

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mumpie t1_j8p7ene wrote

You can use it for normal business purposes like hiring yourself as the CEO of the charity and paying market rates as salary.

That's what the founder of the Susan G Koman Foundation (the pink "for the cure" breast cancer charity) did. According to the following article she made $684K in salary in 2012: https://www.cnbc.com/id/100803324

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mazlix t1_j8s49qs wrote

You’d have to pay ordinary income on that salary though.

Donating stock has a different advantage though. Normally you pay cap gains but if you donate the shares themselves you don’t pay cap gains. This way you can sort of profit from a rise in share price without actually dumping all that extra liquidity into the market. For an ordinary person selling a stock doesn’t move the market but for Elon it can

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