Buffett Seen Saving More Than $1 Billion on Taxes in Swap

Warren Buffett is again showing how to use the U.S. tax code to his advantage.

For the third time in a year, the billionaire chairman of Berkshire Hathaway Inc. has structured a deal in which he buys businesses in exchange for stock that has appreciated. The transactions, called cash-rich split-offs, allow him to avoid capital gains taxes that would be incurred if he sold the shares in the open market.