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But eventually, you sell that capital to repay the loan, triggering a tax event.
by missedthecue 5y ago
But eventually, you sell that capital to repay the loan, triggering a tax event.
- monocasa 5y agoExcept you had access to the capital the whole time via the loans, and only pay back according to the loan schedule, negating most of the tax burden. Hence the 1% figure based on the numbers you yourself provided.
- missedthecue 5y agoIn what way does that negate tax burden. You have to sell (some of) the assets to pay the loan you borrowed. That causes a tax to be paid.