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submitted 7 months ago by filoria@lemmy.ml to c/worldnews@lemmy.ml
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[-] sibachian@lemmy.ml 15 points 7 months ago* (last edited 7 months ago)

except in theory they can borrow from the bank with their stock as leverage and would never actually need to liquidate anything (and they do just that).

[-] cbarrick@lemmy.world 7 points 7 months ago

Yep. This fucking loophole in the American tax system.

You borrow against your existing wealth, then the cost basis of your investments resets upon inheritance. So your estate can sell the investment to pay off the debt, and no capital gains tax is ever paid.

Because of this, in America, capital gains tax only applies to the middle class. The rich have a clear and obvious loophole.

this post was submitted on 19 Mar 2024
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