Warren Buffet

How does he get away with paying a lesser tax rate than his secretary? Can this be done with crypto? I'm a Leaf

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kek - its a psy op from the largest shareholder of Wells Fargo


Most of his wealth in his equity, he takes home a small salary and the rest in dividends.

All of the companies he owns pays more taxes than his fucking secretary - he is just leaving that part out and trying to get you to believe that voting for Democrats is in your interest because he probably fucks babies

>he probably fucks babies
100%

He takes a small fiat salary and then the rest is payment-in-kind of convertible stock options which he deems to be undervalued.

You still pay taxes on payments in kind, but you report the fair market value at the time you received it and like any security don't pay taxes on unrealized gains (read: never cash out anything, ever).

Example:
I own company A and company B. On year 1 day 1 I notice that company A is trading at $1, well below my perceived value of the stock. Confident that it will increase I pay myself a salary of several exercisable stock options at am execution price of $1. On year 1 day 2 the stock rises to $2. I exercise my stock options and have an unrealized 2x gain, then do my taxes and report an in-kind income of (number of options)×$1.

On year 2 day 1 I notice that it is now B company trading below fair value. This year I will pay myself in-kind with option's for company B.

At the end of the two years I have an unrealized gain several times higher than my reported income without having to make any trades or move any liquidity around.

How the fuck is he still alive?

Yes just don’t pay taxes

He and his rich friends sacrifice orphans and drink their Adrenalin filled blood. That's what the whole blood sacrifice thing is from. It's a short term fountain of youth.

look up adrenochrome if you think it's a larp.

Ok all sickos please leave this post. You're disgusting

Ok, I don't get it. What is a payment in-kind? And can this be done with crypto?

Cause he's rich

Charlie Munger is literally an animated corpse

He's actually asked to be taxed more.

A payment in kind is any salary paid in units other than standard fiat currency.

It could be apples, it could be rocks, but most commonly key members of a company with waive a large portion of their salaries and opt to be paid in Stock or exercisable stock options.

You still pay taxes on all payments-in-kind your receive, but they are calculated using the market value of the asset at the time you took possession. If the value goes up after its not taxable until you sell and declare capital gains. So don't sell.

And what's the point in doing this?

Cuts your taxes down by understating your income.

You do a job for me. After the job I tell you I can pay you $100, or give you $50 of stock which are guaranteed to be worth $150 in a month's time.

If you take option A your taxable income has increased by $100 and you gained $100 of liquidity.

If you take option B your taxable income increases $50 and you gained $150 of liquidity.

you can do it with crypto, long term capital gains is flat, regardless of how much you make.

Fyi there's nothing wrong with this system as money kept invested as capital is what companies rely on to function.

Ok but he's not cashing out so why do this? Or is he cashing this amount out? Does he use this strategy to pay his yearly salary?

I spelt this damn boomer's name wrong lol

Liquidity is liquidity is liquidity.

He can sell if he wants to, he can hold and write options off the stocks to collect fiat gains, but most importantly when he dies he can pass the stock directly to his kids. There is an estate tax to be paid but the inheritor still doesn't pay the actual capital gain unless they decide to sell. It's entirely possible capital gains won't be paid on some his positions for generations, if ever.

And why can't he do this without payment-in-kind or whatever? I don't get it

Welcome to the boards