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Is this partly why so many billionaires own things like mega-yachts? Presumably they aren't all avid yacht enthusiasts, no? For example, Mark Zuckerberg has a

Is this partly why so many billionaires own things like mega-yachts? Presumably they aren't all avid yacht enthusiasts, no? For example, Mark Zuckerberg has a lot of money. So much that he can buy a mega-yacht and it not really affect him financially. But, he could buy lots of things that don't affect him financially, and he chooses not to do so. I always assumed that acquiring a massively valued asset like a yacht that's assumed to appreciate was part of this "buy, borrow, die" strategy.

irdc 2y ago
It’s also something that is valuable and can be easily moved.
- mrkeen 2y ago
  You just reminded me of https://en.wikipedia.org/wiki/Yachts_impacted_by_international_sanctions_following_the_Russian_invasion_of_Ukraine https://en.wikipedia.org/wiki/Yachts_impacted_by_internation...
sgu999 2y ago
Read somewhere that it's more for being able to participate decently in ultra-weatlhy events, mostly on the Mediterranean coast. In the case of Zuckerberg that may also be for fishing once the world has collapsed and he lives permanently in his bunker on that island somewhere.
relaxing 2y ago
I don’t think a yacht is generally an appreciating asset. They require massive amounts of money to keep afloat, and the furnishings and tech go out of date requiring expensive overhaul.
maxerickson 2y ago
Probably not particularly an appreciating asset. Especially not at a rate that pays to keep it shipshape.
HDThoreaun 2y ago
No, they just want yachts. Zuckerberg has bought many things that do not really affect him financially.
bongodongobob 2y ago
Yachts depreciate rapidly, not sure where you got the idea that they appreciate.
- dirtdobber 2y ago
  I wasn't sure if they did or not, as I do not own a mega yacht. I was more just posing a question as to whether the purchasing of mega yachts was somehow tied into these tax strategies (which it sounds like it's not).
mrkeen 2y ago
> For example, Mark Zuckerberg has a lot of money. So much that he can buy a mega-yacht and it not really affect him financially. That phrasing deserves a pause. If someone has money, it came from somewhere - income - which is taxed. If you play that in reverse: someone who paid no tax had no income, and therefore no money. Zuckerberg paid 13.7% tax [1]. Ballpark figure income [2,3] for that effective tax rate is $95K/year. You couldn't maintain a yacht on that income, let alone rent or buy one. [1] https://www.theguardian.com/us-news/2022/apr/13/wealthiest-americans-tax-income-propublica-investigation https://www.theguardian.com/us-news/2022/apr/13/wealthiest-a... [2] https://smartasset.com/taxes/income-taxes#9S4WHcw5WA https://smartasset.com/taxes/income-taxes#9S4WHcw5WA [3] https://www.taxact.com/tools/tax-calculator https://www.taxact.com/tools/tax-calculator
- dirtdobber 2y ago
  Hmm, I'm not sure what you're getting at or how it relates to my question. Also, someone could have received lots of income, say 5 years ago, at which point their income tax would be very high. The following years their income tax might be low if they, e.g., don't sell any stocks or take distributions from various trusts they have set up.

irdc 2y ago

It’s also something that is valuable and can be easily moved.

mrkeen 2y ago
You just reminded me of https://en.wikipedia.org/wiki/Yachts_impacted_by_international_sanctions_following_the_Russian_invasion_of_Ukraine https://en.wikipedia.org/wiki/Yachts_impacted_by_internation...

sgu999 2y ago

Read somewhere that it's more for being able to participate decently in ultra-weatlhy events, mostly on the Mediterranean coast. In the case of Zuckerberg that may also be for fishing once the world has collapsed and he lives permanently in his bunker on that island somewhere.

relaxing 2y ago

I don’t think a yacht is generally an appreciating asset. They require massive amounts of money to keep afloat, and the furnishings and tech go out of date requiring expensive overhaul.

maxerickson 2y ago

Probably not particularly an appreciating asset. Especially not at a rate that pays to keep it shipshape.

HDThoreaun 2y ago

No, they just want yachts. Zuckerberg has bought many things that do not really affect him financially.

bongodongobob 2y ago

Yachts depreciate rapidly, not sure where you got the idea that they appreciate.

dirtdobber 2y ago
I wasn't sure if they did or not, as I do not own a mega yacht. I was more just posing a question as to whether the purchasing of mega yachts was somehow tied into these tax strategies (which it sounds like it's not).

mrkeen 2y ago

> For example, Mark Zuckerberg has a lot of money. So much that he can buy a mega-yacht and it not really affect him financially. That phrasing deserves a pause. If someone has money, it came from somewhere - income - which is taxed. If you play that in reverse: someone who paid no tax had no income, and therefore no money. Zuckerberg paid 13.7% tax [1]. Ballpark figure income [2,3] for that effective tax rate is $95K/year. You couldn't maintain a yacht on that income, let alone rent or buy one. [1] https://www.theguardian.com/us-news/2022/apr/13/wealthiest-americans-tax-income-propublica-investigation https://www.theguardian.com/us-news/2022/apr/13/wealthiest-a... [2] https://smartasset.com/taxes/income-taxes#9S4WHcw5WA https://smartasset.com/taxes/income-taxes#9S4WHcw5WA [3] https://www.taxact.com/tools/tax-calculator https://www.taxact.com/tools/tax-calculator

dirtdobber 2y ago
Hmm, I'm not sure what you're getting at or how it relates to my question. Also, someone could have received lots of income, say 5 years ago, at which point their income tax would be very high. The following years their income tax might be low if they, e.g., don't sell any stocks or take distributions from various trusts they have set up.