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July 11, 2013

+Pool, have surpassed their Kickstarter funding goal a day before the deadline. They'll be getting $258,924

June 23, 2015

five years

celebrity endorsements.

1031 exchanges," after Section 1031 of the Internal Revenue Code

With this verdict, the court created a powerful wealth-building tool for real estate investors. No longer limited to transactions between two parties, investors could defer capital gains taxes on real estate sales as long as the proceeds were used toward the purchase of like-kind or "replacement" properties.

disallowed deductions for passive losses and eliminated accelerated depreciation. These restrictions made it unpopular for real estate investors to hold on to losing assets. As a result, 1031 exchanges into better quality properties emerged as one of the few tax-friendly options left for real property investors.

Why have endowments outperformed traditional investments?

The alternatives effect By investing in less liquid alternatives, endowments are typically able to construct a higher yielding portfolio with less correlation to the broader markets. The quality of the manager Illiquid, alternative investments are more difficult to evaluate than publicly traded securities. Skilled managers that are adept at taking advantage of pricing inefficiencies in illiquid securities will have a greater impact on returns than skilled managers operating in the public markets, where price inefficiencies are fewer in number and there is generally less return potential.

If you use appreciated property to fund the trust, you avoid capital gains tax liability on the transaction, the beneficiary’s income may be taxed at ordinary and capital gains rates, and some income may be tax-free.

the endowment may outperform other investment strategies over the long term

A charitable trust is a set of assets -- usually liquid -- that a donor signs over or uses to create a charitable foundation. The assets are held and managed by the charity for a specified period of time, with some or all interest that the assets produce going to the charity.

Bill and Melinda Gates Foundation Trust

J. Paul Getty Trust

Because they still own the assets, there is no protection from creditors and no charitable income tax deduction is available.

If they transfer the stock to a CRT instead, the Brodys can take an immediate charitable income tax deduction of $90,357. Because they are in a 35% tax bracket, this will reduce their current federal income taxes by $31,625.

That’s $78,000 more in income than if the Brodys had sold the stock themselves. And because the assets are in an irrevocable trust, they are protected from creditors.

It is for this reason that well-performing securities that have been held for over a year are the preferred gift to a pooled charitable trust.

Because there is no tax to pay, that means a larger investment into the trust, which means more income for you!