Borrowing against your stocks isn't a loop hole. You eventually have to pay the loan back, when you do, you sell stock, pay taxes on the profit of the sale, and

Borrowing against your stocks isn't a loop hole. You eventually have to pay the loan back, when you do, you sell stock, pay taxes on the profit of the sale, and use the rest to pay the loan. You didn't avoid anything, you just deferred it until later. By the way, if the bank "forgave" the loan, and said you don't have to pay it back, that forgiveness is taxed - usually in a form 1099. So there isn't a loop hole there, either.