Tax and Financial Articles
Warren Buffett’s billionaire friendly tax return
October 13, 2011 by todd · Leave a Comment
Warren Buffett sent this letter to Congressman Tim Huelskamp disclosing some key figures from his 2010 Form 1040:
- Adjusted Gross Income (line 37): $62,855,038
- Taxable Income (line 43): $39,814,784
- Federal Income Tax (line 60): $6,923,494
When you include the $15,300 in payroll taxes, Buffett’s effective income as a percentage of taxable income is only 17.4%.
Buffett will not disclose his full tax return, but the majority of Buffett’s income is most likely made up of Qualified Dividends and Long Term Capital Gains, both of which are taxed at a rate of 15%.
Also noteworthy is the large difference between Adjusted Gross Income and Taxable Income. The difference is his itemized deduction totals – probably a combination of charitable donations and investment interest.
