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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (625332)	8/21/2011 9:40:26 AM
From: Brumar89	2 Recommendations Read Replies (2) \| Respond to of 1583507

Looks like Buffet avoids a lot of tax with the appreciated stock charitable deduction. Let's pick one of his long term stock holdings - Coca Cola. The price today is $67. If he bought it in 1962 (as far back as yahoo finance has price data - Buffet's been an investor a long time) his average costs basis, after who knows how many stock splits, would be $.52 a share. How this would work is he could donate 100,000 shares to Planned Parenthood (his favorite charity) that he bought for $52,000. And his charitable deduction would be $6,700,000 based on the current price. Without that charitable tax deduction of appreciated shares wiping out his ordinary income, Buffett would pay the same tax rate as others on his wages and other ordinary income too. You know, raising tax rates would actually make this appreciated stock deduction even MORE valuable to Buffet? Buffet also avoids the alternative minimum tax (which hits ME btw). I think that's "cute." A tax they claimed was aimed at millionaires (I remember when liberals started this thing) doesn't hit the second richest guy in America but does hit a career accountant: Buffett also avoids nasty alternative minimum taxes (AMT) of 28%. Charity is a powerful tax savings tool to avoid income, AMT and estate taxes. news.yahoo.com