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by coredog64
3355 days ago
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If you own an apartment building and rent it out, you have to pay taxes on the income it provides. The grocery store won't take stock certificates in payment for a gallon of milk. Instead, you have to sell it. As soon as you do, you are recognizing a capital gain and are taxed on it. |
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Which is why the most common advice among long-term real estate owners is "buy more property".
Wealthy people don't have a higher need for milk (or any basic necessities) than the average person. So why would they need to sell any significant portion of their wealth? As someone said elsewhere in this thread, the problem is we don't tax wealth directly, only when it's transferred.