Takeaway
The family qualifies for an immediate tax deduction based on the fair market value of the portion of the business that was donated
The family eliminates the capital gain tax on the 2 million by transferring the equity into their UI DAF before selling it
After taxes, the 2 million donation placed in the DAF prior to the sale saved them $540,000 net.
Additional gains after the donation grow tax free in the DAF
The family qualifies for an immediate tax deduction
based on the fair market value of the portion of the
business that was donated
The family eliminates the capital gain tax on the 2
million by transferring the equity into their UI DAF
before selling it
After taxes, the 2 million donation placed in the
DAF prior to the sale saved them $540,000 net.
Additional gains after the donation grow tax free
in the DAF
The family qualifies for an immediate tax deduction based on the fair market value of the portion
of the business that was donated
The family eliminates the capital gain tax on the 2 million by transferring the equity into their
UI DAF before selling it
After taxes, the 2 million donation placed in the DAF prior to the sale saved them $540,000 net.
Additional gains after the donation grow tax free in the DAF