The “invention” described in this Application is a method, process, structure, system and formulation describing one way how to produce a “financial instrument” which can simultaneously: (1) permit an organization qualified to receive “tax deductible” donations under IRC §170(c)(2) and §2055(a)(2) to issue a “securities futures contract” (the “SSFC”) without violating the restrictions on transfer of restricted stock under SEC Rule 144; and (2) qualify the SSFC as an “exempt security” (not subject to registration or regulation under the Federal Securities Acts or the Commodities Trading Acts of the U.S. Government, when issued by a qualified “tax exempt organization” described in IRC §170(c)(2) and §501(c)(3)-); and (3) qualify the SSFC as a “securities futures contract” within the meaning of the definition in IRC §1234B; and (4) permit the “tacking” of the holding period (under IRC §1223(14)-) of the SSFC onto the holding period of the securities delivered pursuant to the SSFC (provided the SSFC not a §1256 contract); and (5) qualify the purchaser and/or holder of the SSFC, who remains as the holder of the securities delivered pursuant to the SSFC, to receive a charitable income tax deduction under IRC §170(a), or a charitable estate tax deduction under IRC §2055(a), equal to the ‘current market value’ of the donated securities (when the donated securities were received pursuant to the “securities futures contract” and held as a ‘capital asset’ by the holder for a combined holding period which is longer than one (1) year); without regard to the (possibly lesser) “cost basis” of the donor in the securities acquired pursuant to the SSFC; and, without regard to the (possibly shorter) holding period of the donated securities, if/when computed only from the date that the donated securities were delivered pursuant to the SSFC to the donor of the securities.
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