May 24, 2022

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Elon Musk donates $5.7 billion to charity without disclosing the recipient - 02/15/2022 - Mercado

Elon Musk donates $5.7 billion to charity without disclosing the recipient – 02/15/2022 – Mercado

Elon Muskthe richest man in the worldHe donated 5.04 million shares of his Tesla company to charity in November, according to a stock market document released Monday night, without specifying the beneficiaries.

That represented $5.7 billion in the closing price of Tesla stock on the days the donation was made, and $4.4 billion in the closing price. Monday’s closing.

Transactions were made on hold Disposing of shares to meet tax obligations arising from the exercise of stock options.

According to Wall Street Journal calculations, the billionaire gave up more than $16 billion worth of Tesla stock in the last two months of 2021.

Musk, who also owns SpaceX, indicated in a tweet in early December that he would pay $11 billion in taxes by 2021. Donations often reduce the tax bill.

The businessman, whose fortune is estimated by Forbes magazine at 238 billion US dollars (1.23 trillion Brazilian reals), has responded several times on Twitter to the comments of US politicians such as Elizabeth Warren and Bernie Sanders, who advocate a wealth tax. .

Analysts say a donation of Tesla shares could result in a tax break for Musk, because shares given to charities are not subject to capital gains tax, as if they were sold.

“Your tax benefit is going to be huge,” said Bob Lord, an associate fellow at the Institute for Policy Studies who studies tax policy.

“He would have saved between 40% and 50% in taxes of $5.7 billion, depending on whether he could deduct his California income, and avoid the dividend tax he would have to pay if he sold the stock.”

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Lord added that Musk may have donated the shares to intermediaries, such as “money recommended by donors,” rather than directly to charities.

In 2012, Musk signed the “Giving Pledge” initiative, which was launched by the investor and entrepreneur in 2010 Warren BuffettAnd Microsoft founder Bill Gatesand his then-wife Melinda Gates, encouraged billionaires to donate at least 50% of their wealth to charitable activities.

(with Reuters)