This is why it's impossible to tax billionaires.

Anybody with a portfolio can use this strategy, not just billionaires and millionaires

Larry Ellison pioneered this move. He has billions of debt that he has used to fund his lifestyle. Never sells stock, takes out loans with the stock as collateral.

He has paid more in capital gains taxes than entire cities put together.

That’s what every CEO does, borrow from the business + get paid in shares Claim back the VAT on anything you buy as business expenses No income tax, and you get 20% off everything you purchase It’s common practice, not revolutionary

Better luck next time.

How he pays the 10M debt ?

First of all, stock has to go from 6 to 100. If that was easy, anybody could do it. It was not easy. It could have gone to zero. He took the risk, so now he can take the awards.

But he pays annual interest on the loan, whereas taxes are a one-time payment, so it's not exactly a free money glitch. If you service a loan for 10 years at 5% that's 50% paid in interest

He still owes taxes on the capital gains. This isn't really a strategy to avoid taxes so much as to avoid needing to sell shares so they can maintain the ownership of their companies. It wouldn't make sense otherwise, it's just adding interest on top of eventual tax liability.

Wth is Hinata doing 🤣😭

Wtf, what about paying back the loan

He also has the record for most taxes paid at one time…11 BILLION in 2021

False, for non-qualified stock options like Musk's, taxation occurs at exercise. When he exercised large tranches (e.g., in 2021), he did pay taxes on the bargain element—over $11 billion that year alone, one of the largest single tax payments in U.S. @grok

the entire upper middle class does that. if you’re not doing it, then it simply means you haven’t yet made it.

It’s smart. Also, if Tesla fails he gets nothing, so there’s that. Now, how much benefit are his companies providing the United States? We’re good. Lastly, how much money did Tesla pay in corporate taxes? Hint: a lot. I don’t own anything he produces currently, but I admire what he’s helped build in the name of the American Dream. He deserves every cent he makes, however he legally gets it.

Yeah but you eventually have to pay that debt and pay capital gains. Atp you have still made more money than you would have paying tax on every stock tho. It just means he only pays on the money when he has too

But he has to pay that loan back, eventually he has to use some source of income that is taxed to pay that.

And how does he pay back the loan? The 10m....where does that money come from....😉

This is what 99% of Fortune 500 CEOs do, too, though, it isn’t exclusive to Elon whatsoever. For example, I previously worked for a pharma corporation. The ceo made 1.7 million USD per year on paper. But that was less than 10% of his net income. 90%+ as stock options

...ok so how does he pay for the loan?

Smart move

Why post this bullshit when you know it's a lie.

dont hate the players hate the game

do libtards know how taxes work stock options are taxable

isn't that just common sense that everyone does?

A one page bill in congress could solve this

You left out the part where those stock options expire and he had to sell them and paid billions in TAXES, becoming the highest taxed person in HISTORY of the WHOLE PLANET YOU FOOL!

Anyone can do this - you just need to create (or buy) assets that a bank will accept as collateral, as long as the bank believes your assets will hold their value e.g. "borrowing against your house"

Yeah try getting paid with stock options in a recession, deflation or disinflation. Everyone sounds smart during inflationary boom cycle and when cycles reverse, individual skills earn you money 💰

Instead of trying to close the tax loopholes that happen to be legal, how about we all agree to have the government make the most tax loopholes possible and shut down the IRS

And then he has to sell stocks to pay his loan. And then he has to pay taxes on the stocks he sells.

How does one return the debt? One also has to pay the interest. It means that at some point, one will have to sell the shares/assets.

citation needed, but only emotionally.

And how does he pay the debt to the bank if he never sells the stocks?

Those stock options will be taxed at 37-50 percent when he activates them. He's going to have to pay 50B in taxes soon.