That article is wrong on quite a few key points, and misleading on others.<p>&gt; <i>Mark will deduct the fair value of his gift to his foundation from his taxable income in the year he makes the donation.</i><p>No he won&#x27;t. The new foundation is an LLC, not a charitable foundation, so he&#x27;s not eligible to take a tax deduction on it. And even if he was -<p>1. Giving away 99% of your wealth to save tax on the income from the other 1% is a really dumb way to save money, and<p>2. They don&#x27;t have very much taxable income anway - just their salaries, and any capital gains they realise if they sell any Facebook stock.<p>&gt; <i>Mark Zuckerberg will transfer ownership of his Facebook stock without paying capital gains taxes.</i><p>Well, yes - you pay capital gains taxes when you sell something and realise a profit. Since he is not selling his shares, he is not realising a profit, and therefore is not liable to pay taxes on them. Nothing wrong with that!