According to press reports, the very wealthy Bill Daley will be forced to sell a number of assets to comply with federal ethics laws in order to become President Obama’s chief of staff. Lest anyone concern themselves with the unexpected tax burden Mr. Daley will incur, worry not. There is a provision of the Internal Revenue Code, Sec. 1043, that will ease the pain very substantially. It allows those forced to divest assets because of appointment to a high level government job a one-time, tax-free rollover of those assets into a blind trust or some other investment that complies with the ethics laws. I don’t know Mr. Daley’s net worth, but his tax saving will probably be in the seven figures. I imagine that will ease his transition to a position that doesn’t pay very well, according to outgoing White House press secretary Robert Gibbs.
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