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Non-Tech : Kirk's Market Thoughts

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3:59 PM EST

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To: Kirk © who wrote (12283)	10/26/2021 10:58:27 PM
From: Elroy	Read Replies (2) of 26756

people in that situation often end up quitting their $1M per year job, thus paying zero future income taxes, and live off of the $10M per year of tax free unrealized capital gains. That is 100% wrong. In CA capital gains are taxed as ordinary income. Realized capital gains are taxed. Unrealized capital gains are what we're talking about. Someone with $100m in equity can borrow $300k per year on margin to live of off, experience perhaps $5m PER YEAR in more unrealized (and untaxed) capital gains for his or her lifetime, and in the end die with $200m in unrealized capital gains on which they never paid tax, and $10 million in margin debt which the heirs can pay off when they inherit the $200m capital gains (plus the original cost!). This is the Sergey Brin story. If he has $200 billion in stock, it's basically the same as you or me having $500,000, just more! Ha ha, not sure what the point of this sentence was supposed to be....never mind? Sergey will eventually be a rich dead dude never paid any taxes on his $200 billion accumulated wealth because of .... the tax code.

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