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This is the same tax trick that the obscenely wealthy use with their stock portfolios. It's a "fantastic" way of accessing accrued wealth without paying taxes o
by t-writescode 2y ago
This is the same tax trick that the obscenely wealthy use with their stock portfolios. It's a "fantastic" way of accessing accrued wealth without paying taxes on it.
I think I would prefer that we investigate this more thoroughly, as well, to reduce some of these tricks that further stratify the haves and the have-nots.
- lesuorac 2y agoThe thing being omissed here is that there's a cost-basic step-up when you die. So, if the value of the home increased by say 2x the taxes on it are 0 because the cost-basis on it isn't the price your parents bought it for; it's the price when they died and you got it. This works out a lot better for stocks because when you created the company and gave yourself a million stock units for a total of $1 (not each) and those stocks appreciated to be $300 each that's a ton of capital gains. Except when you die and it's stepped up its not. -- https://www.investopedia.com/terms/s/stepupinbasis.asp https://www.investopedia.com/terms/s/stepupinbasis.asp
- nradov 2y agoWhat do you propose we "investigate" exactly? There are no tricks here. Everyone with a basic understanding of finance knows exactly how it works. People have always been allowed to borrow money and use their assets as collateral.