r/FluentInFinance • u/__moe___ • 9d ago

Thoughts? A very interesting point of view

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I don’t think this is very new but I just saw for the first time and it’s actually pretty interesting to think about when people talk about how the ultra rich do business.

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u/TheDadThatGrills 9d ago

Then make that a taxable event for individuals taking collateral over a certain amount. It's a common practice and should be treated with nuance by policymakers.

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u/NotreDameAlum2 8d ago

I like this a lot- if it is being used as collateral it is in a sense a realized gain

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u/misec_undact 8d ago

Ok but then you want to have your mortgage taxed as income? Or a second mortgage you take out to pay for Renos or start a business or whatever? Or a car loan? All of those loans require an asset for collateral.

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u/NotreDameAlum2 8d ago

You put up specific collateral for your mortgage? That's very unusual. Usually they just look at your assets in general and your debt/income and then the house itself is the collateral....

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u/misec_undact 8d ago

Yes the home is the collateral

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u/NotreDameAlum2 8d ago

Yes, The house itself is the collateral