27 points tysone 2 hours ago 7 comments
silverFork 2 hours ago | parent
That is result of some really insane laws that has been written about a million times. They have known that zillionaires are using it to avoid paying taxes altogether, even after death.
yieldcrv 2 hours ago | parent
the financial sector is an ongoing construction project, going the direction of all items having an easy way to be valued to the minute, with the merchant and reseller having the same price instead of a wildly different one, all items then being able to be used as collateral instantly, fractionally sold as shares, and with a derivatives market on top
this project is not done, it’s not close to done, but improvements in this space have led to more people being able to access this lending market
I see that improving beyond publicly traded equity and real estate
karmajunkie 53 minutes ago | parent
as soon as wealth of any sort is collateralized the tax code should treat it as liquid and tax it. preferably heavily.
mindslight 36 minutes ago | parent
Exactly. This is how IRAs already work. Taking a loan (beyond your basis) should count as realized income (while also adjusting your cost basis).
silverFork 12 minutes ago | parent
If they forced sell any stock that is has been held for more than a year on random dates and bought them back automatically, the whole scheme will be done for.
IncreasePosts 37 seconds ago | parent
Won't the people using this strategy end up paying a lot more (in terms of percent ownership of their holdings) in an extended downturn?