Re:Berkshire Hathaway 2020 Annual report [pdf]
by skybrian on Saturday February 27, 2021 @02:27PM
(#26287411)
The rate may end up the same in many situations, but it’s still helpful to control the timing on when you pay long term capital gains. With dividends you’re still paying now rather than later, or perhaps never. (There’s no capital gains on donated stock or inherited stock.)
Re:Berkshire Hathaway 2020 Annual report [pdf]
by christophilus on Saturday February 27, 2021 @02:27PM
(#26287420)
The point is that you pay 0 tax until you sell. That’s better than being forced to pay long term capital gains every year on a dividend.
1. https://www.investopedia.com/ask/answers/090415/dividend-inc...