Tax Implications Quotes

If you're going to buy something which compounds for 30 years at 15% per annum and you pay one 35% tax at the very end, the way that works out is that after taxes, you keep 13.3% per annum. In contrast, if you bought the same investment, but had to pay taxes every year of 35% out of the 15% that you earned, then your return would be 15% minus 35% of 15%-or only 9.75% per year compounded. So the difference there is over 3.5%. And what 3.5% does to the numbers over long holding periods like 30 years is truly eye-opening.

Every one says: 'Listen, I'd love to reinvest. I'd love to hire people. But I have no idea what this healthcare bill is going to do to my bottom line. I have no idea what this financial reform bill is going to do... I'm not going to step out a limb and do any of those until I know what this government is going to do to me.'

Being enrolled in a college does not free you from the legal obligation to become domiciled.

...in terms of business mistakes that I've seen over a long lifetime, I would say that trying to minimize taxes too much is one of the great standard causes of really dumb mistakes. I see terrible mistakes from people being overly motivated by tax considerations. Warren and I personally don't drill oil wells. We pay our taxes. And we've done pretty well, so far. Anytime somebody offers you a tax shelter from here on in life, my advice would be don't buy it.

My stockbroker asked me something important today: paper or plastic?

If you own a wonderful business...the best thing to do is keep it. All you're going to do is trade your wonderful business for a whole bunch of cash, which isn't as good as the business, and you got the problem of investing in other businesses, and you probably paid a tax in between. So my advice to anybody who owns a wonderful business is keep it.

Is it okay for a U.S. bank to pay a U.S. banker but not a U.K. bank to pay a U.S. banker?

Now they got such a high inheritance tax on 'em that you won't catch these old rich boys dying promiscuously like they did. This bill makes patriots out of everybody. You sure do die for your country if you die from now on.

The thing to do with mutual funds is to buy a couple of decent ones, set up an investment plan and then never, ever think about them again, except maybe once a quarter or so when you take a peek at your statements to make sure that you have not accidentally been buying the Fidelity Peace-in-the-Middle-East fund.

I have a problem with too much money. I can't reinvest it fast enough, and because I reinvest it, more money comes in. Yes, the rich do get richer.

I called my business manager in California and said, 'Sell all of my stock' - what little of it I had - and it's the only smart financial move I ever made.

Let's talk about how to fill out your 1984 tax return. Here's an often overlooked accounting technique that can save you thousands of dollars: For several days before you put it in the mail, carry your tax return around under your armpit. No IRS agent is going to want to spend hours poring over a sweat-stained document. So even if you owe money, you can put in for an enormous refund and the agent will probably give it to you, just to avoid an audit. What does he care? It's not his money.

If I get married I get a tax break, if I have a kid I get a tax break, if I get a mortgage I get a tax break. I don't have any kids and I drive a hybrid, I think I should get a tax break. I'm trying to pay off my apartment so I have something tangible. I actually figured out if I paid off my place my reward would be that I would pay an extra four grand a year in taxes.

While it is probably a poor idea to own actively managed funds in general, it is truly a terrible idea to own them in taxable accounts... taxes are a drag on performance of up to 4 percentage points each year... many index funds allow your capital gains to grow largely undisturbed until you sell... For the taxable investor, indexing means never having to say you're sorry.

When it comes to finances, remember that there are no withholding taxes on the wages of sin.

My salary is converted to bitcoin, and taxes are taken out. You have to do all the tax computations in dollars because the IRS does not deal in bitcoins.

I want to be a successful landlord. I like real estate.

The only thing that hurts more than paying an income tax is not having to pay an income tax.

You never cash out a 401(k) or IRA to pay off debt, unless it's to avoid a foreclosure or bankruptcy.

We don't worry over macro-economic factors when investing, as we are always thinking about the long-term.

From the IRS standpoint, 15,000 new employees have to be added just to, you know, administer ObamaCare and look at the tax implications.

I got tired of my taxes paying for exciting little wars around the world. Then I discovered that when I died, my wife would probably have to sell our house to pay for the taxes in America.

The problem for new businesses isn't corporate taxes. Anyone who has actually started a new business knows you don't make enough money for years to pay any meaningful tax on it.

The only people helped by the death tax are lawyers, accountants, and IRS agents.

Plenty of funds have fine long-term returns despite being tax-inefficient and generally costly. But a dirty secret is this: Average, no-load fund investors do much worse than the funds - or the market.