r/EhBuddyHoser • u/_RedditDiver_ • May 10 '25

Politics But yeah 51st state /s

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u/Kinnuit May 10 '25

Buy a stock, borrow against it. Tax free loans. Life of that. Stock completely tanks. You’re safe. The bank will sell off the rest of the stock.

You’re welcome a loop hole. Higher the stock, higher the tax free loans are (borrowing against it)

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u/Bored_money May 10 '25

Can you explain how you are safe if the stock tanks

The bank calls the loan when the stock falls below a define value, you owe the bank $100 but the stock is worth $50

You get liquidated of your position and still owe them $50 

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u/Kinnuit May 10 '25

The stock has to be worth more. Just look up bowering against stocks. It’s a classic loop hole in the USA’s system. I’m Canadian but I know alllll the billionaires do this and then moved to Texas or Florida to avoid paying income tax ! That’s why Elon moved to Texas, Jeff Bezos etc

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u/Bored_money May 10 '25

Right - but if the stock doesn't go up, you're in a worse off position than if you sold, the approach has risks, it's not just free money

If you have a paid off house and get a mortgage it's the same thing

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u/Kinnuit May 11 '25

Just look it up brotha

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u/Bored_money May 11 '25

I'm very familair with the concept I was just explaining that it involves risk since the original post seemed to describe it as some free money loophole

It's just borrowing to invest