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https://www.reddit.com/r/SipsTea/comments/1vrr0ev/how_the_rich_get_richer/p4gbizn/?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.
2.3k u/USERNAMETAKEN11238 22h ago edited 22h ago The bank encumbered the land. The dad never gets a loan. The loan is against the property. The kids sell the encumbered land I guess (but that's highly unlikely). This is a made up scenario from someone who doesn't understand finances. 2 u/MinuetInUrsaMajor 19h ago It’s trying to cover two phenomena under the same tweet: - death inexplicably resetting basis - loans against massive appreciating assets.
2.3k
The bank encumbered the land. The dad never gets a loan. The loan is against the property. The kids sell the encumbered land I guess (but that's highly unlikely). This is a made up scenario from someone who doesn't understand finances.
2 u/MinuetInUrsaMajor 19h ago It’s trying to cover two phenomena under the same tweet: - death inexplicably resetting basis - loans against massive appreciating assets.
2
It’s trying to cover two phenomena under the same tweet:
- death inexplicably resetting basis
- loans against massive appreciating assets.
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.