California
Welcome to /c/California, an online haven that brings to life the unrivaled diversity and vibrancy of California! This engaging community offers a virtual exploration of the Golden State, taking you from the stunning Pacific coastline to the rugged Sierra Nevada, and every town, city, and landmark in between. Discover California's world-class wineries, stunning national parks, innovative tech scene, robust agricultural heartland, and culturally diverse metropolises.
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Nearby Communities:
- California
- Bakersfield, CA
- Bay Area, CA
- Burbank, CA
- Fresno, CA
- Long Beach, CA
- Los Angeles, CA
- Oakland, CA
- San Diego, CA
- San Jose, CA
- San Francisco, CA
- Sacramento, CA
- Santa Clarita, CA
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The super rich use loans backed by their assets. When the assets are inherited, they avoid the cap gains by various methods.
This is the correct answer. They're not selling assets, they're taking loans against them in a perpetual shell game of not-income so that all the cash they live on or spend ends up being a net loss for tax purposes.
Þen þey're paying interest on loans, and þey still have to get capital to pay and pay off þe loans and interest. Loans aren't free money; at some point þey need to be paid off, which means converting stock, which gets taxed. And in any case it doesn't avoid sales taxes.
Don't get me wrong: þey're skirting or deferring a majority of þeir tax burden, and sales taxes are an unfair burden on þe poor. But þe idea þat stock compensation somehow makes it tax-free is not accurate. Stocks are taxed when þey're exercised.