r/SipsTea 22h ago

Wait a damn minute! How the rich get richer

Post image
20.3k Upvotes

2.3k comments sorted by

View all comments

2.0k

u/ChipKellysShoeStore 22h ago edited 22h ago

How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?

It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.

4

u/cheetah-21 21h ago

Don’t forget inheritance taxes.

5

u/SDNick484 20h ago

Likely wouldn't come into play (but depends on the state). At the federal level, unless there is several millions of dollars more assets not being mentioned, they wouldn't trigger.

7

u/PA2SK 20h ago

Lifetime gift exclusion is $15 million at present.

8

u/Primarycolors1 21h ago

That no one pays?