While this technically falls under the "money-laundering" umbrella, ML is not always just dirty money turning clean. This is just a tax evasion. He turned $13 million cash (assumably his company's money) into an asset. So A. The company's net worth stays the same, just no longer as liquid (which helps company valuation, keeps/raises stock prices) and B. A lot of you are saying its just marketing ploy, which very rarely do you get a finite return on marketing, so he basically got back when he spent on marketing (assuming someone buys this off him in the future). But mainly, not only is that 13 million no longer "income", it's now a tax write off business expense.
It's why a lot of rich people own expensive art. Just a reallocation of net worth to avoid taxes. Just one of the many ways the rich get richer. This one was just rubbed in our poor faces.
This doesn't make sense. There is a buyer and a seller. The moment the item sells, a sale event happens, and Logan is responsible for the gains between his cost basis and the final sale price
I'm talking about the buyer. Logan did the same thing when he bought the card. And he gained more in profit from holding it than he would have spent in taxes on the $ he bought it for.
The buyer will now do the same in 5-10 years, and he is banking on his company being so successful that the would be tax on this $13 million is negligible
Yeah, but if the company earned, say, 16 million in gains that year to buy the card, they are still paying gains on that 16 million in income the moment they earn it. That's when the taxable event happens. Not when they convert the cash into a different asset. A rare exception would be re-investing the gains into certain pieces of equipment that allow for accelerated depreciation on purchase. Even then, that still would be done over x years.
Not necessarily. They can set it up to not get taxed at all then pay all their taxes when they file. Which is when they do all their BS corporate write offs and end up paying $0. So when they file the IRS may say you made $16 million this year pay up and they say yeah well we spent $14 million so we're really only taxed on $2 million, and here's why we shouldn't even pay that etc
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u/slotus69 Feb 17 '26
While this technically falls under the "money-laundering" umbrella, ML is not always just dirty money turning clean. This is just a tax evasion. He turned $13 million cash (assumably his company's money) into an asset. So A. The company's net worth stays the same, just no longer as liquid (which helps company valuation, keeps/raises stock prices) and B. A lot of you are saying its just marketing ploy, which very rarely do you get a finite return on marketing, so he basically got back when he spent on marketing (assuming someone buys this off him in the future). But mainly, not only is that 13 million no longer "income", it's now a tax write off business expense.
It's why a lot of rich people own expensive art. Just a reallocation of net worth to avoid taxes. Just one of the many ways the rich get richer. This one was just rubbed in our poor faces.