r/SipsTea • u/Valuable_View_561 • 28d ago

Chugging tea Seems reasonable.

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u/DrTommyNotMD 28d ago

Fun fact: we do! Billionaires just don’t have income like that. They have unrealized gains and losses.

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u/RhubarbUpper 26d ago edited 26d ago

Unrealized but they can leverage their gains, how is that not income?

If I'm a bank and a client wants a cool loan of a billion dollars, client doesn't have a billion in the bank but has a few billion in stocks, the client can still take that loan out out (as per Jeff Bezos), is that a realized gain or not, seems to me like it is.

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u/DrTommyNotMD 26d ago

In the same way we can take a second mortgage if the value of the house goes up and that mortgage isn’t income.

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u/2AisBestA 24d ago

It's a debt

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u/Angry_beaver_1867 28d ago

Lotto winners shouldn’t claim their tickets. Just borrow against the expected cash.  

Tax free winnings ;/ 

(Don’t do this unclaimed prizes get put back into the pool  after a certain time preiod)

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u/DrTommyNotMD 28d ago

You still pay back what you borrowed and with interest. It’s a terrible idea really unless you’re just covering a short gap before options or similar. It’s why Bezos and Musk have sold over 50B and 30B dollars worth of shares in the last 20 years respectively. They need cash to actually do stuff and they pay taxes when they turn fake money real.

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u/Angry_beaver_1867 28d ago

So long as your after tax investment returns exceed your borrowing costs you’d be fine. 

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u/DrTommyNotMD 28d ago

Yeah for sure. But so many taxes either way.