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For many small businesses, that is false. Sole proprietorships and pass through LLCs are extremely common.

• kgwgk 2y ago
  And can those businesses currently take a loan to pay for the owner holidays or whatever?
  • nightski 2y ago
    I do not see in the article where it says the loan has to be used for personal expenses. In fact from what I can tell it just says unrealized gains will be taxed regardless of whether a loan is taken out or not. The loan example is just used as a justification.
    • kgwgk 2y ago
      You're the one who was talking about loans! In response to "If one uses an asset as collateral for a loan" you wrote "So small business can't take out loans unless they can realize and be taxed on the full valuation of their company".
      • nightski 2y ago
        I was responding to the parent who also made no distinction that the loan was solely for personal purposes.
        • kgwgk 2y ago
          The comment was about using assets as collateral for loans. Your response was about something else - or maybe it was not about anything, I'm not sure. A company can also get asset-backed loans using as collateral something the company owns - or it can get a completely different kind of loan where there is no specific asset used as guarantee.