No. of Recommendations: 13
Buffett has also mentioned the benefit that Berkshire pays less tax on the public equity dividends received within than we would as individual owners receiving dividends. Per AI:
“Berkshire Hathaway pays corporate income tax (currently 21% federal rate) on most dividends received, but uses the Dividends Received Deduction (DRD), allowing them to deduct 50% to 100% of dividends, making their effective tax rate on those dividends much lower (e.g., 10.5% on some).
For wholly-owned subsidiaries (over 80% ownership), dividends are generally 100% tax-free, a key reason Buffett prefers buying entire companies.”
Simply sell some shares hc & create & control your own appropriate “dividend”- it works great! No divi box checking necessary. A lot of us have Zero interest in mandatory quarterly dividends- retention and compounding of those earnings has worked wonders over the decades, correct?! If it ain’t broke…Thank you
