Elon Musk Could Reap a Whopping Tax Break If He Joins a Trump Administration
by Greg McKenna
October 25, 2024
Introduction:
Additional extract:(Fortune) Elon Musk has seemingly embraced the idea of serving in a potential Trump administration. If he did, however, take a cabinet position—or run his proposed “Department of Government Efficiency”—it would pose massive conflicts of interest given that he runs large companies like SpaceX and Tesla that benefit from federal contracts.
That could end up being a good deal for the world’s richest man. If Musk is forced to sell his financial interests in his companies, he could receive a tax break worth billions of dollars.
Read more here: https://fortune.com/2024/10/25/elon-mu ... stration/Typically, running those companies (Tesla, SpaceX, X) while also taking a senior government role would not be an option. After all, the New York Times found Tesla and SpaceX alone accounted for at least $15.4 billion in government contracts over the past decade. Meanwhile, Musk’s two biggest companies, as well as X and his brain science firm Neuralink, have been subject to a combined 20 investigations or reviews by government agencies.
Musk could be forced sell his positions in at least some of those companies if he takes a role in Washington. If did so, he would likely benefit from Section 1043 of America’s tax code, which would allow him to defer all capital gains taxes on such divestment, as noted in a recent report from investigative newsroom The Lever. In other words, if Musk joins a second Trump administration, he could receive a tax break worth tens of billions of dollars.
caltrek’s comment: Personally, I don’t think he will even sell his interests in the subject firms, unless he thinks they are way overvalued, and it is time to bail out. More likely, he will simply ignore conflict of interest regulations with the blessing of Trump and other administration hacks. Either way, he stands to benefit as the kleptocracy marches on.
