This could get iffy unless well defined. Else when people take out a loan for a house suddenly they have hundreds of thousands in income, which they would then need to pay tax on again when they earn money to pay it back.
What they do is take out more loans- specifically, on the increase of value their capital had.
You do pay taxes on the sale of the house when that comes, however, in proportion to the capital gains from its sale.
It wouldn’t be hard to carve out an exception for loans under a certain value (possibly, a net cap on total loans. Or some combination there of.) and then exclude mortgages under an appropriate limit, however
Yeah that’s my thinking. Gotta define what cash from loans is taxable.
What I mean by paying tax on paying it back: you had to earn that money, typically from income, which is taxed. So if you had to pay tax on your original loan you would get taxed twice.
But yeah, as long as it’s well-defined, might be a good choice.
I’m sure the billionaires will line the correct pockets to get out of it in any country, though :(
MisterFrog@lemmy.world 1 year ago
This could get iffy unless well defined. Else when people take out a loan for a house suddenly they have hundreds of thousands in income, which they would then need to pay tax on again when they earn money to pay it back.
FuglyDuck@lemmy.world 1 year ago
You don’t generally pay taxes paying a loan back.
What they do is take out more loans- specifically, on the increase of value their capital had.
You do pay taxes on the sale of the house when that comes, however, in proportion to the capital gains from its sale.
It wouldn’t be hard to carve out an exception for loans under a certain value (possibly, a net cap on total loans. Or some combination there of.) and then exclude mortgages under an appropriate limit, however
MisterFrog@lemmy.world 1 year ago
Yeah that’s my thinking. Gotta define what cash from loans is taxable.
What I mean by paying tax on paying it back: you had to earn that money, typically from income, which is taxed. So if you had to pay tax on your original loan you would get taxed twice.
But yeah, as long as it’s well-defined, might be a good choice.
I’m sure the billionaires will line the correct pockets to get out of it in any country, though :(