iolar @iolar@zitidar.barsoom.cc

The wealthy avoid taxes using the “Buy-Borrow-Die” strategy:

Step 1: Buy assets and hold (to avoid capital gains taxes from selling)

Step 2: Borrow money from Banks for living expenses using assets as collateral, at low interest rates (while assets appreciate)

Step 3: Interest paid on borrowed money is a tax write off

Step 4: Wait and repeat. The long-term gains on assets outweigh the short-term cost of borrowing money

Step 5: Pass assets to kids, tax-free (with stepped-up basis) and repeat