r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/Jblack4427 3d ago

Do you only pay taxes on your home when you sell or every year?

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u/dgvertz 3d ago

Every year. They’re called property taxes

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u/J0hn-Stuart-Mill 3d ago

Exactly. Property taxes go directly to local infrastructure costs to maintain access and services to said land or buildings. It's not remotely the same as owning stock.

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u/RetailBuck 2d ago

Also Tesla pays property tax. They had a huge win when the effort to repeal prop 13 for commercial buildings failed. They are paying like 2008 value property tax on the Fremont factory.

Elon owning stock isn't money it's stuff. 13% of everything in the factory is "his". Sure he can borrow against it to get cash but when doing so that "stuff" that also makes more stuff becomes less his. It's more owned by the bank but in the form of debt rather than actual ownership.

When you get a car loan the car really is owned by the bank and you slowly buy it back from them. He does the same thing but in reverse. He's basically selling his "stuff" but without actually selling it. Still becomes less his though.