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A comment on Twitter's Dorsey auctions first ever tweet as digital memorabilia. Parent comment

Re:Twitter's Dorsey auctions first ever tweet as digital mem... by mynegation on Saturday March 06, 2021 @12:05PM (#26368769)
How does that work, mathematically? If you bought an asset and it appreciated you are liable for a tax on capital gains. If you donate this asset that simply eliminates the gain and the associated tax. But this is obviously a thing. Where am I wrong?
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Re:Twitter's Dorsey auctions first ever tweet as digital mem... by xur17 on Saturday March 06, 2021 @12:32PM (#26368974)
> If you bought an asset and it appreciated you are liable for a tax on capital gains. If you donate this asset that simply eliminates the gain and the associated tax. But this is obviously a thing.

If you donate an asset it eliminates the gain and the associated tax in addition to giving you a tax deduction in the amount of the donation. This is why people like to donate highly appreciated assets rather than selling the asset and donating the resulting funds.

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Re:Twitter's Dorsey auctions first ever tweet as digital mem... by ceejayoz on Saturday March 06, 2021 @12:18PM (#26368872)
The gain is fake. The tax benefit from the donation that is based on that fake gain is not.

It’s like making a million dollars in counterfeit money, then donating that to charity. You reduce taxes by $370,000, and are out $0.

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