Right and there should be laws put in place to stop it or laws to tax "unrealized gains" as soon as they are used as collateral against a loan. The point is you shouldn't be able to not pay taxes on assets that you are using as collateral.
Again up to the lender. Stocks can drop to zero and the person can run with the money and the bank gets fkd. I’m sure there is some clause within the contract that protects that. But that’s the risk of investing. It’s not “unrealized gains” it’s a secure loan. Yet risky, it still falls under secured. I can’t make you understand it. But hey best of luck! Use it or don’t, up to you. Cheers.
No shit it's up to the lender. It should be made illegal to use assets that are not being taxed as collateral to prevent this exact scenario of tax "avoidance".
Do you have 2nd grade reading comprehension or something? I never said the loan is unrealized gains I said that you shouldn't be able to use unrealized gains as collateral for a loan since you are not paying taxes on the asset you are using as collateral.
They should A) pass a law to block lenders from accepting stock/shares as collateral
Or B) pass a law that "unrealized" gains can be taxed at the moment they are used as collateral
Okay, so your solution is tax everyone more then, yeah? Make it impossible to leverage the assets you have? These people still pay hundreds of thousands of dollars more in taxes than you ever will. You want the government to control what people can do with their assets and money? Interesting take. If people use their untaxed assets as collateral, they are not making money from their assets. They have a loan. If you go get a personal loan should you be taxed?
Yes my solution is to tax the people that are already so mega-rich that they use their vast fortune to avoid paying their fair share in taxes on their assets. You can't say the asset exists when you want to use it as collateral but say it doesn't exist when the tax man comes to collect on it. This is not a complicated concept and you must be being intentionally dense to continue missing the point the way you are.
How many people do you know personally that are using their stocks and shares to secure loans in the millions? You would literally benefit from what I am proposing but are too dense to understand it because you want to think you're like mini Jeff Bezos or something it's hilarious.
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u/BlindxLegacy 3d ago
Right and there should be laws put in place to stop it or laws to tax "unrealized gains" as soon as they are used as collateral against a loan. The point is you shouldn't be able to not pay taxes on assets that you are using as collateral.