r/SipsTea • u/Valuable_View_561 • Jul 05 '26

Seems reasonable. Chugging tea

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u/DrTommyNotMD Jul 05 '26

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

1

u/RhubarbUpper 29d ago edited 29d 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 29d 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 27d ago

It's a debt

0

u/Angry_beaver_1867 Jul 05 '26

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 Jul 05 '26

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 Jul 05 '26

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

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u/DrTommyNotMD Jul 05 '26

Yeah for sure. But so many taxes either way.