Re:U.S. business contributes smallest share of federal taxes...
by leetcrew on Wednesday May 22, 2019 @11:15AM
(#19982089)
unless you have income (which is taxed as such) how do you pay back the loan without eventually selling assets and paying capital gains?
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Re:U.S. business contributes smallest share of federal taxes...
by ThrustVectoring on Wednesday May 22, 2019 @02:24PM
(#19983971)
If the rate of growth of your assets exceeds your rate of spending by enough to handle volatility, then later on you have significantly more assets to borrow against. As long as the net value of the position grows fast enough, you can kick this can down the road indefinitely. The loan gets paid back after you die, when you no longer owe capital gains taxes on the proceeds.