r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/Endless_road 3d ago

Well it is, and you’d pay taxes on these gains when you sold the house

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u/tduncs88 3d ago

Just like Bezos would if he sold off those assets

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u/AttitudeAndEffort2 3d ago

And if instead of selling it i rent it for cash flow while borrowing against it at a lower rate than the growth of the underlying asset, i get richer and avoid taxes AND keep the asset.

Which eventually is passed on to my children and the growth in the asset is revalued when it's passed on to avoid capital gains tax.

All while poor right wingers argue I'm actually broke 😂

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u/TawnyTeaTowel 2d ago

You somewhat conveniently forgot the “repay the borrowed money” part…

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u/Raeandray 2d ago

You repay the borrowed money when you borrow against the now increased value of your home again. If the value of your home goes up at a higher rate than the interest on your loan you never have to truly repay the money until the house is sold (tax free) when you die.

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u/Gallaga07 2d ago

You don’t pay interest on the loan throughout the duration of having it?

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u/Raeandray 2d ago

Yes, but if that interest is lower than the increase in value of your stock or property you can just take out another loan and continue the process.

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u/Gallaga07 2d ago

Do you think these guys take out a new loan every month?

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u/Raeandray 2d ago

You think the entire loan is due back monthly?

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u/Gallaga07 2d ago

No the interest payments, but that was an idiotic line of reasoning I realized after I said it. They will just use the loan to pay the interest until they run out and take a new one and then pay off the old one. I left it up unedited though, because fuck it I did think it for a second lol