Baalzamon said:
Oh believe me, I know there are tons of perfectly legal ways to avoid paying tax. But the situation you described is limited to the estate exclusion anyways, after which they would be paying a 35% estate tax (as well as additional state estate taxes, if your state has them, like mine does). Besides that, there are numerous reasons to not use a LOC against investments. A) It is risky, as your investments could dramatically decrease in value in a short time span B) The purpose of me saving, and working to pay off huge things as fast as possible is so I don't have to deal with debt anymore. I could probably make loads more in the market investing than I would pay for interest on a home, too, but I would much rather pay the home off quickly and get it out of my way and get rid of the stress associated with it. If you like a life riddled with debt and the stress associated for it just to avoid a measley 15% LTCG tax rate, then all the power to you, though. |
Between my wife and I our kids are exempt from estate taxes for the first $10.5 million of our estate. OK we are doing very well, but not that well. Well I am a firm believer of measureing return on investment. Paying off a 3% mortgage with money i could have in liquid investments is poor money management in my opinion. As for the LOC if I have the discipline to invest I have the discipline to keep the LOC at a low enough amount. In reality I rarely every use it.
By the way the LOC route is how Marc Zuckerberg has disclosed he will access his wealth. He will simply let his investments grow, live off his income and when he needs additional short term cash he uses the LOC.
Its libraries that sell systems not a single game.