Updated 8 months ago on . Most recent reply
Can someone explain the Buy, borrow die concept.
Can someone explain something about the buy, borrow, die concept of avoiding income taxes? I understand that you don't pay taxes on borrowed money. What do you do with the profits from the company to avoid income taxes.
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Bill B.
#3 1031 Exchanges Contributor
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
Like your post title suggests, you die to avoid the taxes. When you die your heirs pay zero taxes. All the depreciation and the capital gains go away. It’s an incredible gift to real estate investors. It’s basically an unlimited contribution Roth, with tax free borrowing.
You can EASILY pass several million to your heirs tax free and avoid at least a $1M in taxes if you spend anywhere near 20 years investing in real estate.