Steve Jobs’ heirs advised to sell Apple shares to avoid $867 million in hiked capital gains taxes

“When Steve Jobs died last month, he left $6.78 billion of stock in both Apple and Disney presumably to his wife and family,” Barbara E. Hernandez reports for NBC Bay Area.

“His widow, Laurene Powell Jobs, may not have a better time to sell off the billions of stock and avoid $867 million in capital gains taxes,” Hernandez reports. “Financial planners told Bloomberg that Powell Jobs and the family should quickly divest and diversify its holdings to avoid higher taxes.”

Hernandez reports, “Capital gains taxes are set to rise in 2013 from 15 to 20 percent, and Americans with a high income may also be subjected to a 3.8 percent tax on unearned gains… Before his death, Jobs moved the shares into a trust to avoid probate fees. However, his will hasn’t been made public, but it’s likely most of his estate is distributed between his surviving wife and four children. ‘I can’t see any reason not to sell all of it,’ Kacy Gott, chief planning officer at the wealth-management firm Aspiriant, told Bloomberg… That could mean millions of [AAPL] shares will be on the open market and possibly in the hands of private equity groups — likely not Steve Jobs’ or Apple’s ideal scenario.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Jungle” for the heads up.]

62 Comments

      1. And neither Gates nor Buffett will pay tax on most of their capital gains as the shares go straight into their “charitable foundation”. (So much for Buffett’s claim that “my taxes are too low”.) If the bulk of the Jobs estate is ultimately intended for philanthropy, that’s the route to take.

  1. By the way, for all those folks who think this is an evil loophole that allows 1%’ers to keep their money, consider this:
    It’s a choice between paying the federal government 15% now or 20% in the future — possibly very far in the future. The federal government can use the money now so it’s a win-win situation. Furthermore, pretty much everyone who has income subject to capital gains tax is going to be cashing in before 2013. The figures are huge.

    The taxpayer saves 5% in the long run; the federal government gets a *lot* of money now.

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