Just wondering if anyone here that’s not a billionaire or super rich is ACTUALLY using this method of leveraging loans agains owned assets to cover living expenses tax free.
Cheers !!!
In: Economics
For the record, this generally doesn’t work for *anyone*, the rich included.
It only works if you have stable assets that will never go down in price–something that, realistically, never happens. Or at least not consistently enough that banks will cover it to make it worthwhile.
For some reason reddit got it in your head that the whole “borrow money from assets, don’t pay taxes, peace out” is common, and it’s really not, because it’s risky for everyone involved and, at the end of the day, you’re still paying taxes and you’re still paying interest, and you’re still no better off than you were before.
Temporarily, or for a short-term project, or as part of a suite of financial decisions? Sure, it’s a useful tool. But just as an accounting gimmick to put one over on the man, it’s a dogshit strategy that very few people use.
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