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.
Type:
Grant
Filed:
August 19, 1999
Date of Patent:
April 1, 2003
Assignee:
Arcon Capital, LLC
Inventors:
Steven Mulvihill, Patricia A. Teplan, Geraldine K. Ryan, John M. Ryan