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> 1) Shares don't do very much on their own, so there isn't really a problem with that. I mean, dude owns a billion in shares - if they earn income dude will pa
by cipheredStones 2y ago
> 1) Shares don't do very much on their own, so there isn't really a problem with that. I mean, dude owns a billion in shares - if they earn income dude will pay tax, if they don't the only true to get to the value is to sell them.
Are you aware of the "buy, borrow, die" strategy? In short, you can borrow against the value of appreciated assets to get income during your lifetime, then pass the assets (and the debt) on in inheritance, and your heirs don't have to pay any capital gains tax because of cost-basis step up when they sell the assets to pay the debt. You effectively avoid any taxation on the appreciation.
- robertlagrant 2y agoYou don't need shares for this - you can be mortgaged up to the hilt and pass on the house to your heirs when you die, and they sell the house to pay off the mortgage. But all the money you borrowed needs to have been spent, or it's subject to inheritance tax (or paying back the debt it came from), and all that spending needs to be on things that are taxed with VAT, with employees providing services you buy who are paying income tax, and the businesses you're buying from paying corporation tax, etc etc. Tax is never avoided; it's just paid through other means.