4 ms·

Why sell assets when you can get a loan against them and the appreciation covers the interest cost? Then you have no taxes to pay and plenty of money to spend.

alchemist1e9 3y ago
I don’t get it, eventually you have to pay back the loan and pay the capital gains tax, so what? People do what you suggest and there isn’t anything wrong with it, they still pay same taxes eventually.
- ceejayoz 3y ago
  If you have $10 billion in shares, you take out a billion in a loan with the shares as collateral. You repay it out of that billion, at low interest. Start running low? Take another loan. The shares are worth $20B now anyways! Never actually having to sell shares means no taxes, plenty of operating funds. Quite common. https://www.propublica.org/article/billionaires-tax-avoidance-techniques-irs-files https://www.propublica.org/article/billionaires-tax-avoidanc...
  - alchemist1e9 3y ago
    I don’t see there being any issue. Eventually the final loan will be repaid with income. Like most of these types of articles they are just Envy clickbait nonsense.
    - ceejayoz 3y ago
      > Eventually the final loan will be repaid with income. Scroll down to #2. Thiel, for example, managed to get $5B into a Roth IRA. > What’s more, as long as Thiel waits to withdraw his money until April 2027, when he is six months shy of his 60th birthday, he will never have to pay a penny of tax on those billions. There are too many tricks available for them to wind up paying a fair share of taxes.
      - alchemist1e9 3y ago
        Isn’t Roth IRA available to anyone? It seems like the complaint is that somehow since he is so successful it isn’t fair he uses the same system regular people do also? Because he has billions he should be extra taxed. It’s also not fair hollywood stars are so much more attractive than most of us, let’s kick their faces in to even it out? The reality is taxes on everyone are actually crazy high, but hidden from everyone, via “employer” labeling and inflation. One latest euphemistic collectivist scheme is “corporate” taxes, total joke, corporations are investors and employees, every tax is either an investor tax or employee tax, taxing an abstract organizational concept is nonsensical. Envy is one of the most dangerous human emotions, helping destroy numerous productive societies with collectivist ideas, your war on billionaires is nothing but another envy driven scheme to help collectivists continue to rob the productive members of society.
- gaadd33 3y ago
  You die and then you don't have to pay back the loan and any capital gains taxes. The assets are marked to market for tax purposes, then the estate can liquidate them to satisfy the debt and the heirs get the remaining assets and can sell with no tax due.

alchemist1e9 3y ago

I don’t get it, eventually you have to pay back the loan and pay the capital gains tax, so what? People do what you suggest and there isn’t anything wrong with it, they still pay same taxes eventually.

ceejayoz 3y ago
If you have $10 billion in shares, you take out a billion in a loan with the shares as collateral. You repay it out of that billion, at low interest. Start running low? Take another loan. The shares are worth $20B now anyways! Never actually having to sell shares means no taxes, plenty of operating funds. Quite common. https://www.propublica.org/article/billionaires-tax-avoidance-techniques-irs-files https://www.propublica.org/article/billionaires-tax-avoidanc...
- alchemist1e9 3y ago
  I don’t see there being any issue. Eventually the final loan will be repaid with income. Like most of these types of articles they are just Envy clickbait nonsense.
  - ceejayoz 3y ago
    > Eventually the final loan will be repaid with income. Scroll down to #2. Thiel, for example, managed to get $5B into a Roth IRA. > What’s more, as long as Thiel waits to withdraw his money until April 2027, when he is six months shy of his 60th birthday, he will never have to pay a penny of tax on those billions. There are too many tricks available for them to wind up paying a fair share of taxes.
    - alchemist1e9 3y ago
      Isn’t Roth IRA available to anyone? It seems like the complaint is that somehow since he is so successful it isn’t fair he uses the same system regular people do also? Because he has billions he should be extra taxed. It’s also not fair hollywood stars are so much more attractive than most of us, let’s kick their faces in to even it out? The reality is taxes on everyone are actually crazy high, but hidden from everyone, via “employer” labeling and inflation. One latest euphemistic collectivist scheme is “corporate” taxes, total joke, corporations are investors and employees, every tax is either an investor tax or employee tax, taxing an abstract organizational concept is nonsensical. Envy is one of the most dangerous human emotions, helping destroy numerous productive societies with collectivist ideas, your war on billionaires is nothing but another envy driven scheme to help collectivists continue to rob the productive members of society.
gaadd33 3y ago
You die and then you don't have to pay back the loan and any capital gains taxes. The assets are marked to market for tax purposes, then the estate can liquidate them to satisfy the debt and the heirs get the remaining assets and can sell with no tax due.