Borrowing against illiquid assets should be considered a taxable event. Seems li...

dzhiurgis · 2025-12-16T04:46:16 1765860376

You pay taxes when you are paying off your loan...

xjm · 2025-12-16T10:28:46 1765880926

Only if you pay it off with taxable income.

If you have a lot of assets you can just refinance your loan with more debt.

dzhiurgis · 2025-12-16T10:47:23 1765882043

This makes no sense. How is lender going to make money?

AngryData · 2025-12-16T22:22:01 1765923721

They still charge interest but at a rate lower than the tax rate of earning it as income.

tenuousemphasis · 2025-12-16T08:17:48 1765873068

Really? What taxes?

Windchaser · 2025-12-16T09:11:13 1765876273

Rather, you pay taxes on the income you use to repay the loan. Plus you pay the interest on the loan.

This basically defers the taxes to a later date and charges you interest for 'em. Which might be worthwhile, depending on how quickly and reliably your capital is growing.

ch4s3 · 2025-12-15T21:51:14 1765835474

So every small business loan should be a taxable event?