The very wealthy take out loans backed by their stocks so they don’t technically have income.
But wouldn’t they be taxed when they sell stocks to repay the loans?
In: Economics
Yes, they’ll eventually pay taxes on the stock sold, but the hope is that the increase in stock will more than make up for the taxes. Or they may wait for a change in tax policy dropping capital gains, etc. and then make the sales. Some just keep rolling loans over until they die and it’s settled by their estate.
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