No one pays income tax on borrowed money, because it isn’t income.
It isn’t a loophole and of course I will defend not taxing borrowed money as income. Bank loans you money to buy a house you think it should be taxed like income. I don’t and never will no matter how upset it makes you.
@Bbravo_724@ii_analyze@Abel198429@Leooweb3 You can use a cash advance to pay the credit card payment. That doesn’t make the cash advance income just like a HELOC isn’t income.
Makes perfect sense. Borrowed money isn’t income exactly like borrowing on a credit card. They it is secured or not is irrelevant. It is borrowed money. Not income.
You are free to borrow against your house if you like, go fund a trip buy a Porsche or whatever, doesn’t make it income.
@Bbravo_724@ii_analyze@Abel198429@Leooweb3 No I don’t pay taxes on unrealized gains and neither do you. And borrowed money isn’t income. Nothing loophole about it just like if you spend $1000 on your credit card you don’t pay income taxes on the $1000 because it isn’t income.