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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, b
by exe34 3y 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 3y agoSo 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?