• TheKMAP@lemmynsfw.com
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    8 months ago

    “Collateral for loan is realized gain” targets the “Buy Borrow Die” strategy.

    • stevestevesteve@lemmy.world
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      8 months ago

      Sure but what’s the actual action there? Implementation of a wealth tax? What property counts for that? Is there some other technique he/you are talking about? Taking a loan will now count as income?

      • TheKMAP@lemmynsfw.com
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        8 months ago

        Making a loan count as income will mess up legit home purchases. If you went that route it couldn’t be that simple.

        A big benefit to the buy borrow die strategy is the step up basis for your children. Realizing the gain will move the basis up and cause a taxable event.

        I don’t know all the details, much less if this plan is perfect, but I think that’s the idea.

        Maybe removing step up basis is enough, to help reduce generational wealth. IDK