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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 taxe
by 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 agoYou'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 agoI was responding to the parent who also made no distinction that the loan was solely for personal purposes.
- kgwgk 2y agoThe 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.