Anyone familiar with Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) probably knows it owns a bunch of individual stocks largely hand-picked by former CEO Warren Buffett, or more recently, with some input from current CEO Greg Abel. Have you ever thought about how these holdings are taxed though? It's not like a mutual fund or exchange-traded fund, which require a yearly reckoning . As a C corporation, Berkshire's stock holdings are taxed much like an individual investor's are. That is, the capital gains tax bill is incurred for the tax year in which the asset is sold. Regardless, there's a pretty big future tax liability sitting on Berkshire's books right now.
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