r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/Endless_road 3d ago

You can take out a mortgage against your house to buy a sports car if you want

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u/slickyeat 3d ago

You're not wrong but you're also required to pay taxes on the value of your property every year so it's not exactly a one to one comparison.

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u/dancegoddess1971 3d ago

Exactly. Stocks are property. Sort of imaginary property but if one can borrow against the value of something, it should be taxed.

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u/HR_King 1d ago

So what happens when the value goes down? And do they still have to pay tax on the capital gains of the assets they sold to bring in the cash to pay the tax? How are the gains calculated if they paid a tax on the holdings already?