scotslad
12th August 2021, 18:38
Good question. According to inequality.org take Elon Musk for example...
"In 2019, he took out $61 million in mortgages on five properties he owned in California. About that time he also had some 40 percent of his personal shares in Tesla pledged as collateral for still other loans. Musk’s millions in borrowed cash have been bankrolling his lavish lifestyle and new investments. These millions have also been providing a sweet end-run around Uncle Sam at tax time.
If Musk had sold some of his Tesla shares or surplus California properties to raise fresh cash, he would have owed capital gains tax on his sale earnings. But by borrowing for the cash, he let his Tesla and California property assets continue to increase in value and, at the same time, sidesteps any taxes."
So now we know ;)
More HERE - https://inequality.org/great-divide/americas-billionaires-borrowing-their-way-to-ever-more-fabulous-fortunes/
"In 2019, he took out $61 million in mortgages on five properties he owned in California. About that time he also had some 40 percent of his personal shares in Tesla pledged as collateral for still other loans. Musk’s millions in borrowed cash have been bankrolling his lavish lifestyle and new investments. These millions have also been providing a sweet end-run around Uncle Sam at tax time.
If Musk had sold some of his Tesla shares or surplus California properties to raise fresh cash, he would have owed capital gains tax on his sale earnings. But by borrowing for the cash, he let his Tesla and California property assets continue to increase in value and, at the same time, sidesteps any taxes."
So now we know ;)
More HERE - https://inequality.org/great-divide/americas-billionaires-borrowing-their-way-to-ever-more-fabulous-fortunes/