California's Newsom targets 'buy, borrow, die' tax loophole used by ultra-rich
By
Aimee Picchi
Summary
California Governor Gavin Newsom is pushing to eliminate the "buy, borrow, die" tax strategy, a loophole that allows the ultra-rich to avoid capital gains taxes by borrowing against appreciated assets rather than selling them, and passing them on to heirs with a stepped-up cost basis. The strategy involves three steps: buying assets that appreciate, borrowing against them instead of selling (avoiding capital gains tax), and passing them to heirs who inherit them with a tax basis reset. Newsom argues this contributes to wealth inequality and wants to close the loophole as part of a broader effort to tax billionaires more fairly.
Source
bskyCalifornia's Newsom targets 'buy, borrow, die' tax loophole used by ultra-richcbsnews.comKey quotes
· 2 pulledThe strategy gets its name from what boils down to a three-step approach to lowering taxes.
First, w
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