Derek85 Wrote:
Nov 30, 2012 8:28 PM
Warren Buffett has created Charitable Trusts for each of his children. He ownes stocks that have appreciated considerably over the years but Warren never paid any income tax on them since he never sold them. Now he is donating them to his children's charities and taking a tax deduction for the current value. After his children's charities receive them, they will sell them and since they are charities they are exempt from tax. Warren takes a huge tax deduction, and passes the money on to his children, and never pays tax.