I'm not sure I understand your question about declaring a profit.If I understood the investopedia article correctly, it's so that you don't end up getting double (or triple) taxed?The rules covering mutual funds and ETFs are different than the rules governing corporations like Berkshire. Companies don't have to distribute earnings as dividends.
Do Berkshire profits end up getting triple-taxed? Once when Apple, for instance, declares a profit, again when Berkshire declares a profit, and again when you declare a profit?
I mean Berkshire effectively is a fund. But it's a closed-end fund, effectively. (I am completely ignorant on how holding companies would differ legally from, e.g., a closed-end ETF. They seem equivalent to me.)
I don't know all the tax ins and outs either, just that mutual funds and ETFs all pass thru their dividends. I assume that the Apple dividends that BRK receives are corporate income for the purposes of BRK filing their corporate tax return. I assume BRK manages that as best they can to minimize their corporate income tax burden.
Statistics: Posted by Da5id — Fri Jul 12, 2024 11:14 pm