buy borrow die

buy borrow die the strategy that billionaires and centa billionaires use to pay a lower percentage of taxes than you do legally and here's how it works first they buy or purchase assets that go up in value over time for example purchasing a tech company like Uber well before it ipos through a vehicle like venture capital Uber turned out to be a great investment they ipoed and you made a lot of money on paper ten million dollar check in their Series A is now worth $10 billion a 1000 x company does this obviously these are the outcomes that the venture capitalist are looking for now you have $10 billion worth of Uber stock if you were to sell this to get cash you would have to pay capital gains taxes which is still lower as a percent than income tax which most people in America pay but it is way higher than what they actually pay because instead what they do is they borrow against that stock here is where they borrow money lending institution like a JP Morgan Chase and say hey I want to take out a loan for $1 billion and I will use my $10 billion worth of Uber stock as collateral so you know I'm good for it and because I'm incredibly rich and very unlikely to default on my loan they give me a super low interest rate 1 to 2% I now have a billion dollars of cash that I can spend and it is not taxed because it is debt it is not income and JP Morgan likes this because they're in the business of lending money not giving you their money you other people's money who have deposited into their accounts their whole job is to have money make money it looks way better for them billion dollars making money through the interest payments so now what do I do with my billion dollars of cash? well I might buy something like a super yacht I might buy fancy houses in Miami and the south of France or I might go buy more appreciating growing assets maybe I write some checks into other companies pre IPO or invest it in the public stock market or go buy up a bunch of real estate and rent it out to people odds are whatever I spend it on it's gonna make me more than my interest payments which again are only 1 to 2% per year so I just bought a billion dollars of more assets that now make me the interest payments which I continue paying and I never had to sell my Uber stock which is still appreciating remember I still haven't paid taxes on anything and then I die my 10 billion dollars of Uber stock has now appreciated to 15 billion dollars reminder I bought and I have my billions of dollars of other assets that I bought on loans and I give all of it every dollar to my kids and when I pass there is a step up in cost basis when they get my Uber stock at $15 billion it's as if they purchased it at that amount all the taxes that would have had to be paid on the gains are wiped away $16 billion zero of it taxed