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Godhumor

(6,437 posts)
Thu Sep 27, 2012, 07:10 AM Sep 2012

Romney I Dig It Trust Gives Heirs Triple Benefit [View all]

Source: Bloomberg

Romney’s vehicle is known as an “intentionally defective grantor trust” or by the acronym IDGT -- hence the nickname: “I Dig It.” Such trusts permit donors to give potentially unlimited amounts to children free of estate and gift taxes.

Here’s how they work: the person setting up the trust, like Romney, contributes assets such as an interest in a fund or shares in a company. If he makes that contribution before those assets appreciate -- particularly when they are privately held and difficult to value -- he can claim the gift tax obligation is low or non-existent since the declared value is low or zero.

If the trust generates any income -- such as by selling stock -- the eventual tax bill is the responsibility of Romney, not the trust. By paying the capital gains tax, which was 20 percent in the late 1990s and is now 15 percent, he can avoid depleting the funds in the trust -- in essence making an additional donation that’s free of gift taxes.

...

Like at other private-equity firms, Bain managers were permitted to co-invest personally in the firm’s deals. It appears from Romney’s DoubleClick filings with the Securities and Exchange Commission that he or his trust received some of the company’s shares as a co-investor, and others as his stake in Bain’s future profits, or carried interest.

Read more: http://www.bloomberg.com/news/2012-09-27/romney-i-dig-it-trust-gives-heirs-triple-benefit.html



Great article detailing how Romney has a trust worth $100 million or so he doesn't declare as part of his personal wealth and which will be passed onto his heirs essentially tax-free. The article also goes on saying that Romney's run for president is bringing to light a lot of tax loopholes people were not really aware of before.
This is disgusting on so many levels jpbollma Sep 2012 #1
Romney may turn out be Turbineguy Sep 2012 #2
which would make it all worthwhile, eh? mopinko Sep 2012 #3
And you remember how he got Alan Keyes wryter2000 Sep 2012 #12
Not just ANY actress. Seven of Nine. maxsolomon Sep 2012 #13
my version of the story- mopinko Sep 2012 #14
Yeah that was his biggest break. Hassin Bin Sober Sep 2012 #20
I was thinking the same thing genxlib Sep 2012 #5
One Can Only Hope Cherchez la Femme Sep 2012 #9
How nice for Tagg, Biff, Brick, and Thumper. tanyev Sep 2012 #4
Who will no doubt launch careers saying they didn't inherit anything... JHB Sep 2012 #10
IDJIT Cherchez la Femme Sep 2012 #6
That's why Lawyers become Politicians formercia Sep 2012 #17
Romneys take benefits of our tax dollars and pays nothing or next to it. Festivito Sep 2012 #7
" Why should I support Public Education?" formercia Sep 2012 #18
To a lackluster brain, people who can't read warning signs around him sounds fine. Festivito Sep 2012 #21
I'm getting really pissed off with all of this Capital Manipulation shit. EnviroBat Sep 2012 #8
Luxury rides mainly leased? liam_laddie Sep 2012 #19
Mostly reeal-estate developers. EnviroBat Sep 2012 #22
Welcome to the Predjudiced Against the Rich Club. Lifetime member here. northoftheborder Sep 2012 #11
THIS is the main cause of inequity in this country! benld74 Sep 2012 #15
The root of all evil and our destruction dotymed Sep 2012 #16
Ugh NCLefty Oct 2012 #23
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