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A comment on Tax details of US super-rich allegedly leaked. Parent comment

Re:Tax details of US super-rich allegedly leaked by cheriot on Wednesday June 09, 2021 @02:00AM (#27444693)
The difference is what secures the loan:

- credit card: nothing

- mortgage: the house

- car loan: the car

One could make rules about loans secured by assets with unrealized gains (with an exemption for a primary residence).

PS Credit card reward points are taxed as interest income in the US so look for a 1099 INT.

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Re:Tax details of US super-rich allegedly leaked by chrismcb on Wednesday June 09, 2021 @03:21PM (#27451960)
Why? The loan didn't get paid back magically. It isn't going to get paid back by other loans. It will eventually be paid with taxable income.
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Re:Tax details of US super-rich allegedly leaked by cheriot on Wednesday June 09, 2021 @11:15PM (#27456302)
Someone sufficiently wealthy can push off taxes until they die and their heirs can use the step up basis[1] to avoid them entirely.

There's also a huge advantage in the ability to choose when one wants to pay taxes even if they eventually do get paid. Buffet loves to talk about unrealized gains as a loan from Uncle Sam at zero percent interest.

[1] https://www.investopedia.com/terms/s/stepupinbasis.asp

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