"We may or may not have a change in the tax code," the chairman and CEO of Berkshire Hathaway said on "Squawk Box. "
"Right now we're sitting and watching because within three months, actually less than that, we'll know the answer on it," he added. "I would feel kind of silly if I realized $1 billion worth of gains and paid $350 million in tax on it if I just waited a few months and would have paid $250 million."
Republicans unveiled their blueprint for tax reform last week. It calls for cutting personal and corporate tax rates and aims to simplify the tax code.
Provisions include collapsing the current seven personal tax brackets to just three: 12, 25, and 35 percent and nearly doubling the standard deduction. The corporate rate would be lowered from 35 percent to 20 percent.
Buffett said he believes the odds of passing a tax plan are "higher than most people think."
"If you talk about the three big items, this is the only one left to do this year," he said. "I would think the Republicans controlling both houses and the presidency, they would not want to have a shutout in their first year."
Buffett joined CNBC from Omaha, Nebraska — the home of Berkshire and where Purpose Built Communities was holding its annual conference. Buffett is co-founder of Purpose Built, along with the investor Julian Robertson. The nonprofit consulting firm helps communities revitalize neighborhoods.