News for hackers. Stuff that matters.

A comment on Bezos donates $100M each to CNN contributor Van Jones and chef Jose Andres. Parent comment

Re:Bezos donates $100M each to CNN contributor Van Jones and... by missedthecue on Wednesday July 21, 2021 @04:17PM (#27911577)
How do you pay back loans without income?
[ Parent | on HN ]
Re:Bezos donates $100M each to CNN contributor Van Jones and... by monocasa on Wednesday July 21, 2021 @04:21PM (#27911626)
Your capital you used for collateral on the loans accrues value quicker than the loan's payments.

Hence that 1% effective rate.

[ Parent | on HN ]
Re:Bezos donates $100M each to CNN contributor Van Jones and... by missedthecue on Wednesday July 21, 2021 @05:58PM (#27912736)
But eventually, you sell that capital to repay the loan, triggering a tax event.
[ Parent | on HN ]
Re:Bezos donates $100M each to CNN contributor Van Jones and... by monocasa on Wednesday July 21, 2021 @06:17PM (#27912879)
Except you had access to the capital the whole time via the loans, and only pay back according to the loan schedule, negating most of the tax burden.

Hence the 1% figure based on the numbers you yourself provided.

[ Parent | on HN ]
Re:Bezos donates $100M each to CNN contributor Van Jones and... by missedthecue on Wednesday July 21, 2021 @08:11PM (#27913780)
In what way does that negate tax burden. You have to sell (some of) the assets to pay the loan you borrowed. That causes a tax to be paid.
[ Parent | on HN ]