US media: "Trump Account" may allow the wealthy to directly donate stocks

Odaily Planet Daily News According to the New York Times, White House and US Treasury officials have held internal discussions on expanding the investable scope of the "Trump Account" (formally known as the 530A account). Current discussions include allowing the world's richest 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 unrealized wealth of wealthy individuals like Elon Musk or Jensen Huang. If the relevant rules are revised, Musk could directly donate Tesla or SpaceX stock, and Huang could donate Nvidia stock.

Compared to the slow and steady returns of index funds, children would be able to hold high-growth large-cap tech stock exposure for the long term, potentially generating enormous gains. Donors could transfer high-priced stocks worth billions of dollars without triggering capital gains tax, while also receiving a full charitable donation tax deduction based on the stock's fair market value, further reducing their tax burden.

However, this idea has sparked debate within the Treasury Department. Restricting the Trump account to diversified index funds was originally intended to protect children from sharp market volatility. Modifying the current rules would require amending relevant regulations, which might need to be completed through legislation. (Jinshi)