Re:Exit Tax: Leave Germany before your business gets big
by qwertylicious on Friday August 08, 2025 @10:44AM
(#44837612)
The parent is referring to the "buy, borrow, die" strategy of wealth accumulation. Would that work in your parent's specific circumstance? Maybe? Maybe not? But taking a low interest loan against assets as a method of wealth generation and tax avoidance is both a viable strategy and an extremely popular one.
Re:Exit Tax: Leave Germany before your business gets big
by carlosjobim on Friday August 08, 2025 @01:38PM
(#44839624)
> How do they get out of their obligation to repay the mortgage
After they have repaid the mortgage they will own a million dollar house clear and free. Which they can sell or mortgage again.
I'm stating that the ability to mortgage or sell your house for a million is evidence that it has increased in value by 900 000.
So parent has mortgaged their 100k house for a million - now what? How do they get out of their obligation to repay the mortgage - that is, buy the house back again for at least a million - without incurring penalties?
If there weren't repercussions for defaulting on mortgage payments, anyone could just trick lenders into buying their house immediately.