I wouldn’t say heavily taxed. If he exercised his options more than 6 months ago he’ll pay the flat 15% capital gains tax. Whereas his effective tax rate on his salary will be around 30%
I have read that that’s one of the wealthy’s “big secret” ways to avoid taxes. They allegedly live off of those loans as their spending money, while the value of the investments they use as collateral increases over time, but they don’t pay taxes on the Unrealized gains. And they can keep borrowing more as needed with those same investments as collateral.
I don’t have the whole scam figured out though. I’m not sure how they pay back the loans without having to cash out something that would generate a tax burden.
I’m assuming s long s they spread out payments over time and roll lots of the debt into the next loan.
That’s how they become too big to fail at their banks. At least that’s the Donald Trump method. His problem is that he has fuck all for collateral at this point.
I wouldn’t say heavily taxed. If he exercised his options more than 6 months ago he’ll pay the flat 15% capital gains tax. Whereas his effective tax rate on his salary will be around 30%
Yeah and he can also use the stocks as collateral on a loan and avoid them all together.
I have read that that’s one of the wealthy’s “big secret” ways to avoid taxes. They allegedly live off of those loans as their spending money, while the value of the investments they use as collateral increases over time, but they don’t pay taxes on the Unrealized gains. And they can keep borrowing more as needed with those same investments as collateral.
I don’t have the whole scam figured out though. I’m not sure how they pay back the loans without having to cash out something that would generate a tax burden.
I’m assuming s long s they spread out payments over time and roll lots of the debt into the next loan.
That’s how they become too big to fail at their banks. At least that’s the Donald Trump method. His problem is that he has fuck all for collateral at this point.
I wonder if you can pay off loans by transferring the stock. Idk, just a thought
If he waits for longer than a year, short term under a year is taxed at normal income rates.