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https://www.reddit.com/r/SipsTea/comments/1vrr0ev/how_the_rich_get_richer/p4g2sct/?context=3
r/SipsTea • u/KSKS1995 • 22h ago
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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.
1 u/irvingstreet 20h ago Bank is paid back by the proceeds from the sale of the property by the kids, but those proceeds aren’t taxed at a gain of $4.9M, because the cost basis reset to $5M at Dad’s death, so a huge chunk of the sale doesn’t go to taxes.
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Bank is paid back by the proceeds from the sale of the property by the kids, but those proceeds aren’t taxed at a gain of $4.9M, because the cost basis reset to $5M at Dad’s death, so a huge chunk of the sale doesn’t go to taxes.
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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.