US media: "Trump account" may allow wealthy individuals to directly donate stocks

According to the New York Times, White House and Treasury officials have begun internal discussions on expanding the investable scope of the "Trump Account" (officially known as Account 530A). Current discussions include allowing the world's wealthiest individuals to donate stock in their companies. Currently, the Trump Account only allows cash investments in diversified index funds, prohibiting stock donations. This idea aims to leverage the unrealized wealth of billionaires like Elon Musk or Jensen Huang. If the rules are amended, Musk could directly donate Tesla or SpaceX stock, and Huang could donate Nvidia stock. Compared to the slow and stable returns of index funds, children would be able to hold long-term exposure to high-growth large-cap tech stocks and potentially reap huge profits. Donors could transfer billions of dollars worth of high-priced stock without triggering capital gains tax, while also receiving a full tax deduction for charitable donations based on the fair market value of the stock, further reducing their tax burden. However, this idea has already sparked debate within the Treasury Department. Restricting the Trump Account to diversified index funds was originally intended to protect children from the shocks of market volatility. Amending the current rules would require revising relevant regulations, potentially through legislation. (Jinshi)