The Real Reason Warren Buffett's Taxes Are Low - Forbes
"Still, Mr. Buffett is not sharing the real reason that he doesn’t pay much in the way of income tax relative to his great fortune.
The secret is hidden in plain sight.
Mr. Worstall alludes to it when he mentions that Berkshire Hathaway does not in fact pay dividends.
Mr. Buffett’s secret which you can find blasted all over the Internet is one of his famous quotations:
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.
That’s the real reason Mr. Buffett does not pay a lot of income taxes."
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