'I've been paying income tax since I was 13': Warren Buffett, 86, hits back at Donald Trump's claim he recorded  a 'massive deduction' to avoid tax bill

  • Billionaire investor and Hillary Clinton supporter Warren Buffett denied Trump's claim that he uses deductions to avoid paying taxes
  • Buffett released a statement on Monday saying that his 2015 returns included charitable deductions totaling $5.5million
  • The investor refuted Trump's claim that he hasn't released his returns because he is under audit
  • 'I have no problem in releasing my tax information while under audit,' Buffett said
  • Trump has come under fire in this election for admitting that he avoided paying federal income tax by citing massive losses in 1995 

By Ariel Zilber For Dailymail.com

Published: 14:32 EST, 10 October 2016 | Updated: 15:45 EST, 10 October 2016

Billionaire investor Warren Buffett responded to Donald Trump's allegation that he reported 'a massive deduction' to avoid paying federal income tax by saying he would be willing to release all of his returns.

The Berkshire Hathaway chief released a statement on Monday saying that he has paid federal income tax 'every year since 1944, when I was 13'.

'Mr Trump says he knows more about taxes than any other human. He has not seen my income tax returns. But I am happy to give him the facts,' Buffett, 86, said in a statement, reported by Bloomberg News.

'The total charitable contributions I made during the year [2015] were $2,858,057,970, of which more than $2.85billion were not taken as deductions and never will be. Tax law properly limits charitable deductions.'

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Billionaire investor Warren Buffett (right) challenged GOP presidential nominee Donald Trump (left) to release his tax returns, saying that there is no 'legal' obstacle to him doing so

Buffett said his tax rate was in accordance with his adjusted gross income for 2015 - $11.6million. His total charitable deductions amounted to nearly $5.5million.

'I have paid federal income tax every year since 1944, when I was 13,' he said. 'Though, being a slow starter, I owed only $7 in tax that year.'

'I have copies of all 72 of my returns and none uses a carryforward.'

Trump mentioned Buffett and George Soros by name during the debate because the two men are known supporters of Hillary Clinton, his Democratic opponent in the race for the presidency.

'Many of her friends took bigger deductions. Warren Buffett took a massive deduction,' Trump said.

Trump (left) accused billionaires Buffett and George Soros, who are supporting Hillary Clinton (right), of using the tax code to avoid paying federal income tax

Trump (left) accused billionaires Buffett and George Soros, who are supporting Hillary Clinton (right), of using the tax code to avoid paying federal income tax

Trump admitted during Sunday's debate that he avoided paying federal income tax on a $916million loss in 1995.

'Of course I do. Of course I do,' Trump said, validating documents published by the New York Times.

'And so do all of [Clinton's] donors, or most of her donors. I know many of her donors, her donors took massive write offs.'

Trump stated that 'a lot' of what he wrote off was depreciation and that he pays a 'tremendous' amount of taxes.

'I absolutely used it,' he said of a provision in the tax code that allowed him to write of $50million a year in income for 18 years.

And Clinton allowed it as a US senator 'and she'll always allow it, because the people that give her all of this money, they want it, that's why,' the Republican presidential contender said.

'I understand the tax code better than anybody that's ever run for president...and it's extremely complex,' he argued.

Trump has resisted calls to release his tax returns, claiming that his attorney advised him against doing so because he is under IRS audit. 

Buffett, however, refuted this on Monday. 

'I have been audited by the IRS multiple times and am currently being audited,' Buffett said in his statement on Monday. 

'I have no problem in releasing my tax information while under audit. Neither would Mr. Trump – at least he would have no legal problem.'  

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