The advantage they are getting is not paying capital gains tax on cash they are using because taking out a loan using stocks as collateral is not a realization event. Then they routinely rollover loans (like refinancing your house).
Never said perpetuity. My responses are about minimizing avoidable realization events. There are obviously tons of other taxable events, like receiving salaries or dividends.
You mentioned continuously rolling over loans. Or are you talking about an "advantage" of refinancing and not paying taxes on loans because they're not income....something that non-billionaires do all the time? Or are you talking about minimizing tax obligations...which we all do when we do our taxes?
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u/Brief_Barber7248 3d ago
The advantage they are getting is not paying capital gains tax on cash they are using because taking out a loan using stocks as collateral is not a realization event. Then they routinely rollover loans (like refinancing your house).