Comment on Borrowing money against their stuff to get more stuff to borrow money...
RememberTheApollo_@lemmy.world 1 day ago
Tax portfolio loans. That’s pretty much it. Sure, there will need to be some moving parts beyond that, but basically if you treat a loan as an income rather than something like a primary residence purchase, it gets taxed.
NannerBanner@literature.cafe 22 hours ago
I think the ‘unrealized assets’ should be taxed as ‘realized’ if they are used as collateral. Yes, it would affect the reverse mortgages and such, or home equity loans, but fuck it, I’d take those relatively small pains against the massive societal gains.
Xtallll@lemmy.blahaj.zone 22 hours ago
Reverse Mortgages are usually predatory anyway, so more scrutiny and regulation isn’t a bad thing.
Natanael@infosec.pub 22 hours ago
Yes, this. Tax collateral as advance on capital gains and the whole incentive to dodge taxes with loans go away
You could make exceptions for loans taken to improve the same asset (home improvement loans) but you’d have to pass strict audits to get the exception approved
RememberTheApollo_@lemmy.world 20 hours ago
I don’t know what the financial consequences would be. Taxing unrealized assets would also have to have limits because so many retirement funds and the like are unrealized gains, we don’t want to hurt people’s ability to retire. That’s why putting a tax on trying to sidestep paying capital gains makes more sense. We’re not going to figure out how that all works here today. People won’t sit on unrealized gains, they’re going to have to use them in some fashion even if just as collateral, and we need to tax whatever workarounds they use to make those funds work for them.
Leonardo_da_Vinci@lemmy.world 19 hours ago
The rule applies for people with billion dollars of assets.
RememberTheApollo_@lemmy.world 19 hours ago
They divest the assets into holding companies, like they already do, held by LLCs.