[dismalaf]

When you get a loan you don't pay taxes. You pay taxes on the income used to pay it back, or the gains when you sell an asset to pay it back.

[lovecg]

Yeah I’m confused about this part. Is there some loophole where they never have to pay the loan back? Otherwise they’d be taxed at that point.

[fwsgonzo]

The loopholes are well known at this point. They keep renewing loans until they die, then it's tax-free after death. It's called Buy-Borrow-Die.

[dismalaf]

Buy-Borrow-Die resets the basis for capital gains tax, but then there's estate tax when the money gets passed on (exemption is only $15 million, trivial to billionaires).

[cosmicgadget]

Taxed on repaying a loan?

[dismalaf]

No, taxed when you earn the money that repays the loan. Income tax, capital gains taxes, dividend taxes, estate taxes, etc... However the money was acquired to repay the loan, a tax was applied.

[cosmicgadget]

Which is pendantically and functionally very different from the implied tax on repayment.

[dismalaf]

Maybe you didn't read it properly, I said taxed "on the income" then specified that's the money "used to pay it back".

Income has a specific definition if you want to be pedantic, and types of income are always taxed.

[cosmicgadget]

I read it properly but "the implied tax on repayment" was referring to lovecg's comment.