Michael Dell turns a $6.25B so called donation into a massive 74% tax write off while shielding his heirs from a 40% estate tax hit.

“Today, President Donald J. Trump joined top lawmakers and philanthropists Michael and Susan Dell to celebrate an extraordinary milestone for Trump Accounts: a historic $6.25 billion charitable commitment from the Dells. Trump Accounts are a new, historic savings tool made possible by President Trump’s landmark Working Families Tax Cuts Act.

This landmark gift — one of the largest direct investments ever made in American families — will dramatically accelerate President Trump’s initiative to give every newborn child a head start toward lifelong financial security and the American Dream.”

https://www.whitehouse.gov/articles/2025/12/landmark-dell-gift-supercharges-trump-accounts-for-americas-kids/

IRC §170 — Charitable Contributions Deduction

  • This section governs deductions for contributions to qualifying organizations, including the U.S. federal government for public purposes.
  • Donations to the federal government are treated as charitable gifts, meaning they can be deducted against income tax.
  • For individuals, deductions are generally capped at a percentage of adjusted gross income (AGI), but large gifts to government entities often qualify for higher immediate deductibility.
  • IRS Publication 526 explains this in detail: contributions “to the United States or any state for exclusively public purposes” are deductible

https://www.irs.gov/publications/p526