The rich businessmen appointed by Donald Trump to his administration are required to divest themselves from their business interests and will have to sell some their assets as required by law. This will avoid conflicts of interest when they start to function at the position they were nominated for.
The federal government law, however, provides that should they reinvest their money within 60 days to certain investments approved by the government. They will be entitled to a deferment of the tax payable on the properties they divested themselves from.
The privilege is not a tax exemption but a delay in the payment of tax according to Kenneth Gross, a partner at Skaden, Arps, Slate, Meagher & Flom law firm, who has this to say in an interview reported by CNN. "You pay the capital gains rate that's applicable at the time that you sell," Gross said. "You're not avoiding tax, you're just saying, 'I don't have to pay it now," he added.
The law provides this privilege to persons appointed to government positions as an incentive for joining the government. Nominees are required to sell their assets and corporate assets that may conflict with the position for which they are nominated.
For example, Steven Mnuchin who is nominated for Treasury Secretary by President Donald trump will have to diversify his holding to qualify for the position. Mnuchin, who is an investor and partner at Goldman Sachs, and a member of the board for a multibillion dollar financial investment firm is entitled to a delay in the payment of capital gains tax when he sells properties. This is to meet the provisions required by law and buys into government approved investments within 60 days.
The same thing holds true to Commerce Secretary nominee Wilbur Ross, a billionaire investor who will have to diversify his assets to be confirmed for his position. Although, the deferment referred to is huge, they would really not mean much for these billionaires whose only interest is to serve the country.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
