Michael Saylor - How to never pay Capital Gains Tax

His latest interview articulates this strategy the clearest way I’ve heard him refer to it..

https://youtu.be/BoVlCnZe5vQ?t=3378

He makes a compelling case to never sell, his logic about Debt / Equity ratio is sound..

What I still can’t wrap my head around, is the argument goes.. “you need money to live”, don’t sell your BTC as you’ll incur capital gains tax.

So say you take out $200K on the $1M asset..

a. What happens if the asset goes down in value?

b. How do you pay back the $200k without selling something?

I get that as the value of your asset goes up, the percentage you owe back in relative terms shrinks..

But whoever loaned you that money is still gonna want it back.. how do you pay it back?

I’m guessing the answer is your asset has gone up so high that you do eventually have to sell, but you’ve benefitted from holding the asset for much longer therefore when the loan is called eventually you sell a much lower percentage of your asset..

Thoughts?

Submitted January 25, 2021 at 01:52AM by uk-anon https://ift.tt/3qKWqdS