The thing that bothers me when people say “oh its unrealized gains, it’s not real money” is that they use those unrealized gains as collateral for loans of real money. They effectively ARE that rich.
And that ends when they die, at which point the stocks get stepped up in basis so the taxes are almost completely avoided. Or they structure their debts in such a way that certain entities can be bankrupted without impacting the actual assets.
Things get wild when you’re in the 0.1% and above.
The thing that bothers me when people say “oh its unrealized gains, it’s not real money” is that they use those unrealized gains as collateral for loans of real money. They effectively ARE that rich.
It’s BS that you can borrow against it. If he did sell it the valuation would drop.
As far as I’m concerned, that’s the point at which unrealized gains should be taxed: as soon as you’re using it as leverage
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With money they loan from a bank, using whatever they bought with the previous loan as collateral.
It’s credit all the way down.
And that ends when they die, at which point the stocks get stepped up in basis so the taxes are almost completely avoided. Or they structure their debts in such a way that certain entities can be bankrupted without impacting the actual assets.
Things get wild when you’re in the 0.1% and above.
I can’t imagine how this isn’t fraud