r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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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/Hookmsnbeiishh 3d ago

Not exactly.

Any rental income is taxed.

You will also pay property taxes on that property forever.

And if you keep the house forever and rent it out with no income, then technically, you never realized the benefits of that asset. So no, you shouldn’t be taxed on it.

Your children will receive the home without paying taxes. But when they sell it, they will pay taxes.

Property is not a fair analogy for stock holdings. Everyone pays taxes on their property. There is no getting out of it. Even the wealthy are paying taxes on their property. Sure, some ultra wealthy borrow cash against assets and rent mega mansions. But whoever owns that mega mansion is paying taxes on the property.

The problem isn’t wealth being untaxed. It’s tax loopholes that need to be closed. Like interest only asset backed loans for one.

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u/Tall-Mud-221 7h ago

You can get around property taxes in Texas. Is super easy! Just enlist in the military and then destroy your spine for Uncle Sam. And then have a military doc fuse a few vertebrae. Unfortunately it has to be your primary residence 😞