wealthiest person in each state

Quote: JimRockford

The super rich guy takes the loans to his grave. When his heirs inherit his assets the cost basis is reset so they can then be sold to repay the loans with no capital gains and therefore no income tax is paid on the money used to repay the loans.

Payments have to be made on the loans. Capital gains are not "income" and the proper tax rate for them is 0%.

No bank can forego interest payments.

Quote: AZDuffman

Payments have to be made on the loans. Capital gains are not "income" and the proper tax rate for them is 0%.

No bank can forego interest payments.

According to economist Laurence Kotlikoff they can keep borrowing money as long as their assets keep growing. (It's in the quote from my post). I suppose they can keep getting new loans to pay off the old loans all secured by assets that are many times what they can ever spend.

If capital gains were taxed at 0% there would be no need for the loans. They could sell their assets to fund their standard of living tax free.

Quote: AZDuffman

Payments have to be made on the loans. Capital gains are not "income" and the proper tax rate for them is 0%.

No bank can forego interest payments.

Capital gains are income regardless of tax liability.

Why even such things as non-taxable income actually exist.

Quote: rxwine

Capital gains are income regardless of tax liability.

Why even such things as non-taxable income actually exist.

Nope. They are a one-time gain on a sale.

Quote: JimRockford

According to economist Laurence Kotlikoff they can keep borrowing money as long as their assets keep growing. (It's in the quote from my post). I suppose they can keep getting new loans to pay off the old loans all secured by assets that are many times what they can ever spend.

If capital gains were taxed at 0% there would be no need for the loans. They could sell their assets to fund their standard of living tax free.

Laurence can claim whatever he wants. No bank can lend out money and not get interest payments. If he worked at an actual bank he would understand this concept. This would be like GM giving them a car in exchange for a lien on their house then a bigger lien when they trade up.

Quote: AZDuffman

Nope. They are a one-time gain on a sale.

Yeah, and how does an increase in adjusted gross income, not be income.

Quote:

Capital gains will increase your adjusted gross income (AGI), and this can cause you to lose eligibility to contribute to an IRA or a Roth IRA, and you could be phased out of itemized deductions and some tax credits.Jan 13, 20

Better hire a tax attorney if you ever tangle with the IRs. Your flimflam isn’t sophisticated enough to fool anyone.

Quote: AZDuffman

Payments have to be made on the loans. Capital gains are not "income" and the proper tax rate for them is 0%.

No bank can forego interest payments.

Actually they can in the case of negative interest. The patron depositing money is paying the interest not the borrower.

Quote: DRich

Actually they can in the case of negative interest. The patron depositing money is paying the interest not the borrower.

In that case they get it both ways. Negative interest rates are for deposits. Borrowers still pay as well.

Quote: AZDuffman

Laurence can claim whatever he wants. No bank can lend out money and not get interest payments. If he worked at an actual bank he would understand this concept. This would be like GM giving them a car in exchange for a lien on their house then a bigger lien when they trade up.

The series of loans doesn't have to come from the same institution. Interest needs to be paid, but there is no reason that it can't be deferred. Interest accumulates in student loans while attending school. A reverse mortgage is a loan that doesn't get repaid until the borrower dies and the house is transferred to the lender. As I said, I am no finance expert, but I am confident that the multi-billionaires and their advisors have it figured out.

Quote: JimRockford

The series of loans doesn't have to come from the same institution. Interest needs to be paid, but there is no reason that it can't be deferred. Interest accumulates in student loans while attending school. A reverse mortgage is a loan that doesn't get repaid until the borrower dies and the house is transferred to the lender. As I said, I am no finance expert, but I am confident that the multi-billionaires and their advisors have it figured out.

Student loans are all government so it can defer. Before the feds took it over in 2010 (which some Democrats in Congress did not even know when they questioned Jamie Dimon, et al) the feds paid the banks the interest while deferred. Reverse mortgage interest gets paid all the time, though some does defer. Usually an investor buys them, Fannie and Freddie being the biggest.

Trust me, "the rich" are not just taking loans upon loans rolling them over. I do not care what some lefty economist is claiming.