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It's not really a loophole. Either you have to pay the debt back by selling a portion of the asset, at which time you're assessed a capital gains tax, or you ha
by friend_and_foe 3y ago
It's not really a loophole. Either you have to pay the debt back by selling a portion of the asset, at which time you're assessed a capital gains tax, or you have to earn the money elsewhere at which you're assessed an income or capital gains tax. Either way, taxes are paid on the loan, they're just deferred.
- monocasa 3y agoExcept for all of the events that reset basis, like death.
- friend_and_foe 3y agoThat's what estate taxes are for, no?
- monocasa 3y agoThey're orthogonal; regular income that's been taxed is subject to an estate tax.