Charitable and public funding using tax credits and passive losses
US6542875B1 · kind B1 · utility
Assignee
Inventors
Key dates
| Filing date | Aug 19, 1999 |
| Grant date | Apr 1, 2003 |
| Priority date | — |
| Expiry date | Aug 19, 2019 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/12
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
Limited partnerships formed for specified public purposes, such as qualified low-income and elderly housing construction and services, are federally tax advantaged. In accordance with the present invention, tax credits and/or passive losses are leveraged by being directed into a method of funding charitable works, for instance school construction projects. A $1 million investment in a qualifying tax credit and/or passive loss plan, with recoupment of the investment after 13 years, will return 8.05% after taxes over 13 years if 50% of the tax credit amounts are donated to a qualified charity or public entity; this results in a net benefit to the donor of $1,759,450 and a total contribution to the charitable entity of $615,000. That contribution can, in accordance with the invention, fund the issuance and retirement of municipal bonds secured principally by the contribution, sufficient for a school construction project of about $500,000.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.