When Berkshire ultimately sells the Amazon shares, it will pay capital gains taxes where its cost basis is what it originally paid for Washington Post shares. The taxes are deferred, not eliminated.
One way to eliminate capital gains tax is to donate appreciated stock to a 501c3 non-profit.
- The non-profit gets the full value of the shares.
- The donor gets a charitable deduction (Form 1040, Schedule B) on federal taxes.
- Instead of receiving tax payments, the government effectively subsidizes the charity of your choice.
I've been subscribing to PennyStock Egghead for about a year now and have loved the objective advice Nathan gives. http://penny-stock.keysolve.net
He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions.
Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account.
I may not have a big account, but it's a lot bigger than it was a year ago.
On just one of Nathan's picks this year I managed to make my investment back ten-fold!
Check this website: http://penny-stock.keysolve.net
Warren Buffet!!!
Read something about Warrant Buffett's investment strategy. Below is the piece I don't understand. No matter how long you hold a stock or security, when you sell you pay taxes for at least long term capital gain right? How can he "swap" out the shares instead of cash without paying any taxes?
<<<2. Buffett talks a big game on taxes but Berkshire plays by the same rules as everyone else. Most of the earnings increase was in the form of investment gains, largely from cashing out when Amazon (AMZN) CEO Jeff Bezos bought the Washington Post. By swapping out shares instead of cash Buffett was able to book a 100-fold gain in Graham stock purchased in the 70s without paying any taxes.>>>
Here is the link about that article: http://finance.yahoo.com/news/4-lessons-from-warren-buffett-s-biggest-quarter-ever-123213258.html
