Berkshire Says BofA Dividends Will Be Taxed at 14.175% Rate

Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) said dividends on its $5 billion in preferred shares of Bank of America Corp. (BAC) will be taxed at a 14.175 percent rate because the securities will be held in insurance units.

“Virtually all of the stocks that Berkshire owns are held in its property-casualty subsidiaries, and that will be the case with the Bank of America preferred,” Buffett’s Omaha, Nebraska- based firm said today in a statement.

Berkshire issued the statement in response to a Wall Street Journal editorial that said the effective tax rate would be 10.5 percent. Ashley Huston, a spokeswoman for the Wall Street Journal, declined to comment.

To contact the reporter on this story: Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

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