Section 2634 helps administration employees defer capital gains taxes
Members of President Biden’s Cabinet are able to punt paying taxes as they divest their assets to avoid conflicts of interest when they enter into public service, thanks to a little-known provision of federal law.
Under Section 2634 of federal elections law sits a unique provision to help soften the financial blow of new administration officials suddenly selling off assets: certificates of divestiture.
Since 1989, this tax provision has been offered by the Office of Government Ethics and has helped administration employees and appointees — including Cabinet members — defer paying capital gains taxes when they are required to sell assets as they enter public service.
Government appointees and employees are able to put off paying capital gains taxes as long as they reinvest their gains into less-conflicted interests, such as mutual funds and treasury bonds.
Energy Secretary Jennifer Granholm has two certificates of divestiture: one for shares in a variety of companies, including Apple, and one specifically for 240,520 shares in electric car company Proterra, where Granholm used to work, according to financial disclosure documents reviewed by Fox News.
Granholm recently sold her Proterra stock after weeks of scrutiny sparked by a presidential visit to the electric car company prior to Granholm’s divestment from the company.