Acquire assets, never sell them, use them as collateral for bank loans, use that capital as collateral for further bank loans. Never sell, no capital gains tax.
Bank loans aren’t considered income therefore not subject to being taxed.
Don’t the unpaid loans get collected from the estate upon death, and the inheritors get whatever is left?
Still a tax dodge, but sounds like the wealth would reduce each generation?
I also still agree capital concentration is still occurring. Probably due to those loans getting used for excessive gains on the stock market. But those buys and sells would trigger capital gains tax.
Again not saying I’m ok with all this wealth concentration, just feels like a lot of nuance is missing here.
Buy borrow die is a very real economic strategy.
Acquire assets, never sell them, use them as collateral for bank loans, use that capital as collateral for further bank loans. Never sell, no capital gains tax.
Bank loans aren’t considered income therefore not subject to being taxed.
Die rich, your kids inherit the money Scott free.
Don’t the unpaid loans get collected from the estate upon death, and the inheritors get whatever is left?
Still a tax dodge, but sounds like the wealth would reduce each generation?
I also still agree capital concentration is still occurring. Probably due to those loans getting used for excessive gains on the stock market. But those buys and sells would trigger capital gains tax.
Again not saying I’m ok with all this wealth concentration, just feels like a lot of nuance is missing here.
I was being concise so as to keep the comment short. But I recommend you look into it. It’s a very real thing and it’s completely legal.