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Yeah I’m confused about this part. Is there some loophole where they never have to pay the loan back? Otherwise they’d be taxed at that point.
by lovecg 4mo ago
Yeah I’m confused about this part. Is there some loophole where they never have to pay the loan back? Otherwise they’d be taxed at that point.
- cosmicgadget 4mo agoTaxed on repaying a loan?
- dismalaf 4mo agoNo, taxed when you earn the money that repays the loan. Income tax, capital gains taxes, dividend taxes, estate taxes, etc... However the money was acquired to repay the loan, a tax was applied.
- cosmicgadget 4mo agoWhich is pendantically and functionally very different from the implied tax on repayment.
- dismalaf 4mo agoMaybe you didn't read it properly, I said taxed "on the income" then specified that's the money "used to pay it back". Income has a specific definition if you want to be pedantic, and types of income are always taxed.
- cosmicgadget 4mo agoI read it properly but "the implied tax on repayment" was referring to lovecg's comment.
- fwsgonzo 4mo agoThe loopholes are well known at this point. They keep renewing loans until they die, then it's tax-free after death. It's called Buy-Borrow-Die.
- dismalaf 4mo agoBuy-Borrow-Die resets the basis for capital gains tax, but then there's estate tax when the money gets passed on (exemption is only $15 million, trivial to billionaires).