CHARITABLE CONTRIBUTION OF LLC INTERESTS

General information: This strategy involves a taxpayer (donor) transferring their ownership interest (membership units) in a Limited Liability Company (LLC) to a qualified charitable organization (e.g., a public charity, private foundation, or donor-advised fund). The primary goals for the donor are typically to receive a federal (and potentially state) income tax deduction for the value of the donated interest and to avoid recognizing capital gains tax on the appreciation embedded within that interest.