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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: BRK.A to BRK.B conversion Date: 2/27/2008 9:40 PM
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I posted this question on the Berkshire Hathaway Board and was referred to this board for a possible answer to my question. Shares of Berkshire class A may be converted by the holder at any time to 30 shares of class B stock.
Does conversion of BRK A to BRK B, constitute a taxable event? Do the different "rights" of the two classes of stock make A & B different stocks, so that conversion amounts to a sale?
One respondent declared that his accountant had treated it like a stock split, so that it did not constitute a taxable event. Is this interpretation correct?


It probably depends on what differences, if any, exist between the ownership rights of the two classes. If it's just that Class A is equivalent to 30 shares of Class B, and that each share of Class A has 30x the voting power of each share of Class B, then I would consider the conversion to be a tax-free event. If the differences are deeper than that, then I would want to do further research before venturing an opinion.

Ira
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