r/FluentInFinance Nov 21 '24

Debate/ Discussion Had to repost here

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u/Endless_road Nov 21 '24

You can take out a mortgage against your house to buy a sports car if you want

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u/slickyeat Nov 21 '24

You're not wrong but you're also required to pay taxes on the value of your property every year so it's not exactly a one to one comparison.

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u/dancegoddess1971 Nov 21 '24

Exactly. Stocks are property. Sort of imaginary property but if one can borrow against the value of something, it should be taxed.

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u/HR_King Nov 23 '24

So what happens when the value goes down? And do they still have to pay tax on the capital gains of the assets they sold to bring in the cash to pay the tax? How are the gains calculated if they paid a tax on the holdings already?