4 ms·

Well yeah, loans aren’t income. Should people pay income tax when they receive a mortgage?

• exe34 2y ago
  With a mortgage, the house itself is the collateral. In this case, the profits on the shares "aren't realised until you sell them", so it's not real profits, but somehow you can use them as collateral to get a loan and grow your total wealth - without spending a penny or even having to get a job. In that case, I think if you're using shares as collateral, the profits on those shares should be taxable.
  • cycrutchfield 2y ago
    So each time you do a cash-out refinance of your home, that should be taxed as income? You still own your house, you haven’t sold it, so why should you be taxed repeatedly on it?
    • jncfhnb 2y ago
      Taxing the gain or loss on the new valuation of the home and adjusting the cost basis going forward doesn’t seem like an outrageous idea
    • exe34 2y ago
      Not the whole value, just the gains.