3 ms·
Why not treat collateralization the same as a sale? Bezos puts 1B worth of AMZN as collateral? Sure, but now treat that as a capital gains event and trigger app
by RestlessMind 3y ago
Why not treat collateralization the same as a sale? Bezos puts 1B worth of AMZN as collateral? Sure, but now treat that as a capital gains event and trigger appropriate taxes.
When the loan is repaid and AMZN is uncollaterized, treat it as a new buy event with a new cost basis.
- kuchenbecker 3y agoI have no expertise in the matter, but largely agree "realization" should be when "value is assessed and used for gain" and not a strict sale. That being said, I don't want the Pandora's box of redefining "realization" opened.
- RestlessMind 3y agoYou can do it carefully and one clear scenario at a time. First, go with collaterization. Then, when billionaires find something else, go with that. And on and on.