IG:raphael301 | Global Health | Everything Data | Health Economics | ML |Sigma | Stocks | Polo| Global^2 | A student of H. Munehisa | Philosophy of M. Aurelius.
Dad buys land for $100K. Today it's worth $5M. Dad doesn't sell because selling triggers huge tax bill. Dad borrows against it instead. A loan isn't income. So no tax. Dad lives off the loans for decades. Dad dies still owning the land. Kids inhert at $5M basis.
Kids sell & owe nothing to the lRS. The $4.9M gain? Gone This is exactly what wealthy
families do to avoid taxes and build generational wealth.
Once again, the US proves why it is greatest country! Someone bought a small business for $48,000 on a platform called SMB Market, and now it is worth over half a billion dollars. I had no idea there was an entire marketplace just for buying and selling businesses exits.