Any qualified tax experts who care to weigh in? I have an issue with taxing unrealized capital gains.


No expert here - I don't even understand my own taxes. but...

I don't think "they" will see it as taxing unrealized gains, but more as pre-paying 3/4 (15% vs 21%) of the future tax bill. Thus removing the "interest-free loan", or float, that Buffett has used so well.

Nice they waited til the end of his career.



A different twist for Berkshire, though, is how this convoluted scheme might impact long-term holdings.

As I read the article, the annual bill will be for the higher of:
. (Profits + realized gains) X 21%
. or
. (Profits + realized gains + unrealized gains) X 15%

So in a year with big unrealized gains, the 'cash' tax rate on profits and real gains will be lowered to 15%. Probably a smart tax team could do even better.

Maybe that would be a good time to take the $20B in Coke gains?

Berkshire Hathaway FAQ

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