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Does conversion of Berkshire Class A stock into Class B stock generate capital gains tax?
Wiki User
∙ 13y ago
It is not a conversion, they are dfferent securities. Yes, taxable event.
No,
Straight from a representative at Berkshire via the BNSF purchase (Linda Hurt), the conversion of Berkshire of Berkshire A shares to B shares for US residents is a non-taxable event. There is NOT a sale and purchase involved. This is confirmed also, as a conversion of common stock holdings in the same corporation by J. K. Lasser's "Your Income Tax 2010. See contact for Berkshire conversion information below:
BNSF Investor Contact: Linda Hurt Berkshire Hathaway Contact:
(817) 352-6452 Marc Hamburg 402-346-1400
BNSF Media Contact: John Ambler (817) 867-6407
BERKSHIRE HATHAWAY INC. TO ACQUIRE BURLINGTON NORTHERN SANTA FE
CORPORATION (BNSF) FOR $100 PER SHARE IN CASH AND STOCK
I have contacted Ms. Hurt twice to confirm this issue. Even Warren Buffett is converting his A shares to B shares as he gives his holdings of A shares to The Bill Gates Foundation. This is why the trading volume in Berkshire Hathaway allowed it to be added to the S & P 500 index.
Wiki User
∙ 13y ago
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