3 ms·

Can you explain to me how borrowing money is actually income?

• yardstick 4y ago
  If the borrower defaults, and thus cedes the collateral to the lender, does the borrower also get to default on their tax obligations now that the shares aren’t theirs? Or is that added to their debt mountain? There’s lots of schemes around borrowing but never paying it back, deferring payment until death, paying it back such a way the money is just returned to you via some other entity, etc.
  • jdasdf 4y ago
    >If the borrower defaults, and thus cedes the collateral to the lender, does the borrower also get to default on their tax obligations now that the shares aren’t theirs? Or is that added to their debt mountain? They are taxed for the sale yes.