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Buffets advice to not pay taxes: "a holding period of forever incurs a capital gains tax of 0%"
http://www.freerepublic.com ^ | Aug 15 2011 | NoLibZone

Posted on 08/15/2011 12:04:49 PM PDT by NoLibZone

Mr. Buffet’s oft stated plan to avoid any tax rate:

"Our favorite holding period is forever You only pay income taxes at any rate on realized appreciation.

An investment with a holding period of forever incurs a capital gains tax of 0%, while all along the holder can be getting wealthy from appreciation. "


TOPICS: Business/Economy; Extended News; Your Opinion/Questions
KEYWORDS: buffet; taxes

1 posted on 08/15/2011 12:05:01 PM PDT by NoLibZone
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To: NoLibZone

The wealthy don’t live paycheck to pay check.

The dems use projected tax revenue to increase spending on vote buys.


2 posted on 08/15/2011 12:08:01 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

Right. Now they tell me. Well, doesn’t matter anyway, I’m going out the same way I came in. Naked and broke. Buffet can stay here forever with all his gold.


3 posted on 08/15/2011 12:10:04 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: NoLibZone
Geez, I am no Warren Buffet, but you can only realized the benefits of appreciation if you actually sell the asset.

On further thought, I guess you could borrow against the appreciated asset and gain economic benefit that way. Let's ask mortgage lenders how well THAT has worked out.

4 posted on 08/15/2011 12:10:32 PM PDT by fhayek
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To: NoLibZone

Buffet is a hypocritical buffoon. He should just shut up and give ninety percent of his money to the U. S. Treasury, and pronto. He’s one of the worst Obama lickspittles. Colin Powell is another. They’re disgusting. Both should have known better.


5 posted on 08/15/2011 12:14:24 PM PDT by donaldo
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46 Days And FR Is Still Short Of Its Goal

We Are In A Fight For Our Republic

Are You In Or Are You Out?

Support Free Republic

6 posted on 08/15/2011 12:16:50 PM PDT by DJ MacWoW (America! The wolves are here! What will you do?)
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To: NoLibZone

Not exactly, Warren. While you can hold the assets for your lifetime, when you die, the federal government will...if your friends Obama, Pelosi, and Reid have their ways...surrender 55% or more of your assets (not just the capital gains) to the federal government and probably a high percentage to the state of Nebraska.


7 posted on 08/15/2011 12:16:52 PM PDT by MIchaelTArchangel
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To: NoLibZone

Source? Link?


8 posted on 08/15/2011 12:21:51 PM PDT by avacado
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To: NoLibZone
I think Buffett is another liberal victim of French Revolution Syndrome - he realizes he is only one flash mob away from losing everything, and hopes he can use government largesse and loud public declarations of his own holiness to buy himself peace of mind.

The mob he fears will still hang him first.

9 posted on 08/15/2011 12:25:11 PM PDT by Mr. Jeeves ( "The right to offend is far more important than any right not to be offended." - Rowan Atkinson)
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To: fhayek

He could use his economic assets as collateral and borrow somwhere else at a low rate. The investor class should boycott this traitor.


10 posted on 08/15/2011 12:30:28 PM PDT by grumpygresh (Democrats delenda est)
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To: NoLibZone
An investment with a holding period of forever incurs a capital gains tax of 0%, while all along the holder can be getting wealthy from appreciation.

Note to Mr. Buffett: In most cases, the paper gain you incur during the course of "getting wealthy from appreciation" isn't even worth the paper it's printed on. You can ask anyone who purchased dot-com stocks in the late 1990s or real estate in 2006-2008 -- and held onto their assets "forever" -- all about that.

11 posted on 08/15/2011 12:30:52 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: NoLibZone

The wealthy do not need to sell their shares but the poor middle class is counting on future sales to provide retirement funds.


12 posted on 08/15/2011 12:31:49 PM PDT by Raycpa
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To: fhayek
On further thought, I guess you could borrow against the appreciated asset and gain economic benefit that way.

Its not that simple for the extra wealthy. Having significant shares of a company can provide you control over the actions a company makes. This can give the shareholder access to funds to pay personal expenses indirectly.

13 posted on 08/15/2011 12:34:40 PM PDT by Raycpa
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To: Mr. Jeeves

No, his position is more prosaic. He owns a lot of insurance companies and through them has placed a lot of bets that will cost him dearly if the economy tanks further. His aim is to have taxpayers shore up the economy to save his a$$.


14 posted on 08/15/2011 12:37:02 PM PDT by expatpat
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To: MIchaelTArchangel
Not exactly, Warren. While you can hold the assets for your lifetime, when you die, the federal government will...if your friends Obama, Pelosi, and Reid have their ways...surrender 55% or more of your assets (not just the capital gains) to the federal government

Dear Michael,

Not exactly. When I die, my fortune will go the the Foundations of my rich friends, mostly to the Bill and Melinda Gates Foundation ..... TAX FREE!

Warren Buffett gives away his fortune: The world's second richest man - who's now worth $44 billion - will start giving away 85% of his wealth in July - most of it to the Bill & Melinda Gates Foundation

That leaves YOU to pay for the Federal Government!

BWAHAHAHAHAHA!!!

Sincerely,
Warren Buffet

15 posted on 08/15/2011 12:40:52 PM PDT by Polybius
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks NoLibZone.
You only pay income taxes at any rate on realized appreciation.

16 posted on 08/15/2011 12:42:12 PM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: Polybius

Here is how the foundation thingie works in practice. Buffet starts transferring shares to Gates Foundation. Buffet doesn’t care about the value anymore, he doesn’t need it. But he does care about the control and power that his shares provides. So, as he transfers shares the vote for those shares goes to Gates Foundation but guess how the Gates Foundation will vote ? Right, Buffet will have an effective proxy because the Gates Foundation will not want to cause Buffet to redirect his shares to another charity.


17 posted on 08/15/2011 12:50:48 PM PDT by Raycpa
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To: avacado

I posted as a vanity.

Topics: opinion/question

Info on his quote is here:

The Real Reason Warren Buffett’s Taxes Are Low

http://www.forbes.com/sites/peterjreilly/2011/08/15/the-real-reason-warren-buffetts-taxes-are-low/


18 posted on 08/15/2011 12:53:24 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

His insurance companies hold all his wealth. They don’t pay capital gains tax.


19 posted on 08/15/2011 1:04:56 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: NoLibZone

Thanks!!!


20 posted on 08/15/2011 1:07:40 PM PDT by avacado
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To: NoLibZone

One of the reasons WHY Obama and the Democrats are losing favor right now with the American people is b/c people are beginning to realize that any taxation scheme they put into place will completely protect the zillionaires who fund the Democratic Party. Buffet is not really proposing punitively high taxes for rich zillionaires like himself. He is proposing punitive taxes for those immediately below himself who are trying to BECOME rich. Big difference.

It is as if two people are walking down the street and a beggar approaches them. Both are well off and comfortable but one is a multi-millionaire and the other is simply a properous person with a net income well below one million. The multi-millionaire gives the guy a 100 dollar bill, uses his cell phone to call the press to come by and take his picture as he is engaging in this charitable act, and at the same time piously recommends to his friend that he do likewise. However, the friend immediately recognizes the hypocrisy of this b/c a 100 dollar bill for him will represent a far larger donation - as a proportion of his total - than it will for the multi-millionaire. Not only that but he also insisted upon making it into a self-serving media event


21 posted on 08/15/2011 1:11:57 PM PDT by Rosie405
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To: NoLibZone

No Warren, lower everyone else’s income tax rate to a maximum of 15%.


22 posted on 08/15/2011 1:59:25 PM PDT by free_life (If you ask Jesus to forgive you and to save you, He will.)
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