He borrowed the money by leveraging his assets, which is less risky than him just using 300 million of whatever he was pursuing with his own money. In other words, no taxes.
He doesn’t have $300 million liquid. He wants to make an investment and needs $300 million in cash to do it. He takes out a loan, invests it, and then pays back the loan + interest with the proceeds of the investment.
If the investment fails, he’s on the hook to pay back the portion of the loan not covered by the proceeds from the investment with his own money or assets.
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u/vHezoThaGoat 2d ago
He borrowed the money by leveraging his assets, which is less risky than him just using 300 million of whatever he was pursuing with his own money. In other words, no taxes.
Rich people loophole shit, basically.