US media: “Trump Account” May Allow Billionaires to Directly Donate Stocks

Odaily Planet Daily News According to a report by the New York Times, officials from the White House and the U.S. Treasury Department have begun internal discussions on expanding the investment scope of the “Trump Account” (officially named the 530A account). Current discussions include allowing the world’s wealthiest individuals to donate their company stocks. The Trump Account currently only allows cash investments in diversified index funds and does not permit stock donations. This concept aims to utilize the yet-unrealized wealth of billionaires like Elon Musk or Jensen Huang. If the relevant rules are amended, Musk could directly donate shares of Tesla or SpaceX, and Jensen Huang could donate shares of Nvidia.

Compared to the slow but steady returns of index funds, children would be able to hold high-growth, large-cap tech stock exposure for the long term, potentially achieving substantial gains. Donors could transfer highly appreciated stocks worth billions of dollars without triggering capital gains taxes, while also obtaining full charitable contribution tax deductions based on the stocks' fair market value, further reducing their tax burden.

However, this idea has sparked debate within the Treasury Department. Limiting the Trump Account to diversified index funds was originally intended to protect children from severe market volatility. Modifying the current rules would require amending relevant regulations, which may need to be accomplished through legislation. (Jin Shi)