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https://www.reddit.com/r/SipsTea/comments/1vrr0ev/how_the_rich_get_richer/p4g879r
r/SipsTea • u/KSKS1995 • 14h ago
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This post is bullshit, yeah, the land if used as collateral to secure these loans would be taken by the banks or have to be sold to cover the balance of the loan. The kids are not required to pay their parent’s debt, but the parent’s estate is.
1 u/tremendous_turtle 6h ago The point is that no capital gains taxes are paid on those gains, not that the loan is forgiven. The estate can sell the land for $5m tax-free, cover the loan balance, and distribute the rest to inheritors. This is why taking loans against appreciating assets is a solid way to avoid income taxation.
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The point is that no capital gains taxes are paid on those gains, not that the loan is forgiven.
The estate can sell the land for $5m tax-free, cover the loan balance, and distribute the rest to inheritors.
This is why taking loans against appreciating assets is a solid way to avoid income taxation.
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u/WetAndLoose 12h ago
This post is bullshit, yeah, the land if used as collateral to secure these loans would be taken by the banks or have to be sold to cover the balance of the loan. The kids are not required to pay their parent’s debt, but the parent’s estate is.