He uses shell corporations, nothing to report on his personal taxes.
What a bs argument.
Nailed It !
Posted on 10/10/2016 5:55:05 PM PDT by Olog-hai
The more I learn about Warren Buffet, the more I’m surprised that Berkshire Hathaway ever made the first dime.
buffet uses carried interest
which is a scam
I call BS.
Buffett may be the "Oracle of Omaha," but I doubt that he has never had a net operating loss. I'd really like to know what Buffett actually said, not what some reporter thought he heard.
I can believe that Buffett has never taken a NOL deduction that large. Even Trump admits that he was hit with big losses in the 90's, it's in his book.
A few moments of looking at the 10K's filed by Berkshire Hathaway show his statement to be untrue.
"Investment and derivative gains/losses in the first quarter of 2016 included after-tax gains from investments of $2.4 billion and after-tax losses from changes in the fair values of derivative contracts of $0.5 billion"
"Derivative contracts produced pre-tax losses in the first quarter of 2016 of $810 million"
Buffett's business reported more than 1.7 billion dollars in depreciation expenses for the first quarter of 2016.
Using the liberal media's approach, he avoided paying taxes on 1.7 billion dollars of income during the first three months of 2016. That is 1.7 times the amount of money the media accuses Trump of not having to pay income taxes on, but instead of it being over a period of 30 years, it is over a period of 90 days. And that's not counting the $810 million in derivative losses.
Buffet is the biggest crony capitalist of all time
No, it's quite possible. If your income is largely qualified dividends or long-term capital gains, your overall tax rate could have been in the 15-20% range back before Obama changed it.
His secretary would have been paid very well, with no substantial deductions, to be above that.
No, he said her overall tax rate was higher than his.
Depending on his source of income, that could have easily been true.
Absolutely don’t believe him!!
I worked for a company he owned..by a well known name that most households are familiar with.
I worked 12 hours a day, 6 days a week and at the end of the week I received $20 to $40 dollars. We traveled in a hot, NON-air conditioned van in the summer time, had to lug heavy equipment from house to house, had to pay for our own lunches which had to cover 2 meals since we were on the job that long, and had to pay for some of our own supplies for the job. Those supplies were deducted from our pay checks before we received them.
We were supposed to receive $1700 at the end of the month, most didn’t last but a week or two. But those who did last that long didn’t receive $1700. They didn’t pro rate that money to cover the time you did work.
He got a lot of free labor!
His deductions are much larger than Trumps. Using the leftist media analysis applied to Trump's deduction, Buffet avoided paying more than $870 million in taxes over three months earlier this year.
He uses shell corporations, nothing to report on his personal taxes.
What a bs argument.
Nailed It !
It was actually about $1 Billion.
And, it wasn't income taxes. It was excise taxes associated with his NetJets subsidiary.
I may not have all the details right, but I believe the IRS wanted to treat them like an airline and collect ticket taxes.
There may have also been something about when the law was changed, and whether it was retroactive.
But even if I don't have all the details right -- the short version is: he won in court, and didn't pay the disputed amount.
Buffet, write a check of $10 Billion a year to the Federal Government or STFU.
The fact that every crooked tycoon and baron of Wall Street is against him is a clear sign that Trump is on the side of the angels...
I understand, and you likely know much more about this than I do, but I would think that someone like him would have more income from stock appreciation than from dividend income. If he didn't change positions frequently, and held specific stocks for the long term, then he could have paid a lower long-term capital gains rate, but I would bet that he made lots of moves annually, and that he was just smart in how he took loses against gains in any particular year.
Thanks, that's good information. But, a question: was that a Berkshire Hathaway loss, or a personal loss?
Berkshire Hathaway is a publicly-owned corporation, so that would have all been on the corporate return. Trump took the NOL on his personal return, because his wealth was structured differently.
Just like the "secretary pays a higher tax rate" comment: Buffett knows exactly why, but throws out these carefully qualified quotes, knowing the media is too stupid to understand the nuances.
We need massive growth in the private sector for jobs, and unlike Buffett, I am not independently wealthy enough to afford Clinton and her rhetoric about “investments in the middle class”.
I'd have to look at the annual report, but I suspect that Buffett holds a signficant insider position, and he has held it for a very long time.
Also:
“For 2014, BERKSHIRE ITSELF recorded a provision for $7.9 billion in taxes, most of which was “deferred.” In fact Berkshire, like many other companies, is able to defer much of its taxes, in its case $61 billion. This is money it acknowledges it owes the government but has yet to pay.
Deferred tax liabilities are the difference between taxes that will come due in the future and what the company owes today. Accounting rules require this difference to be recognized as a liability, but it ultimately acts as a sort of “float” that the government allows companies in the midst of an acquisition—which Berkshire almost always is.
In 2012, the year before it was acquired for $28 billion by Berkshire (and a Brazilian partner), H.J. Heinz paid more than $600 million in dividends. Those dividends were taxed and provided revenue to the U.S. Treasury. After the acquisition, the dividends stopped. Tax revenue from those dividends stopped.
In 2010, the year before it was acquired by Berkshire for $9 billion, Lubrizol paid $90 million in dividends. After the acquisition, the dividends stopped, as did tax revenue on the dividends.
In 2009, the year before it was acquired by Berkshire for $44 billion, Burlington Northern Santa Fe paid $546 million in dividends. After the acquisition, the dividends stopped, as did tax revenue on the dividends.
LAST YEAR, Berkshire entered into what became known as a “cash-rich split-off” that, according to the New York Times, might have allowed it to avoid $1 billion in taxes. Berkshire traded its stock in Procter & Gamble, which carried a low cost basis of $336 million, for P&G’s Duracell unit plus $1.7 billion in cash, a total value of $4.7 billion. The point was to reduce capital-gains taxes that would have been due on a sale of Berkshire’s P&G stock.
It seems that Buffett and his businesses are serial deprivers of tax revenue to the U.S. Treasury. Yet that does not deter him from loudly advocating higher income tax rates for others.”
http://www.barrons.com/articles/warren-buffetts-nifty-tax-loophole-1428726092
HA! I'm guessing that since Net Operating Loss Carryforward had been recently added to the tax code (1961 or 1962 as I recall) Buffet simply failed to realize he was holding an additional asset!
Smoke screen. Trump took a NOL which is figured prior to figuring your adjusted gross income. It’s not a deduction. Notice he starts off with saying what his adjusted gross income was not what his gross income was before adjustments and/ or what adjustments he took
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