u/fb39ca4 wrote (the comment Michael replied to):
It's not double taxed, as the price at the time of the loan becomes the new cost basis when the shares are sold.
u/michaelnovati replied ·
Yeah that's right. What about the gains though while the loan is running.
E.g. I have $1B of Google stock and I get a line of credit and pay $400M in taxes left with $600M for the loan and then stock 10X's over the next 10 years. and the line has $6B backing it tax free?
But I see what you're saying that the initial amount isn't double taxed if they do it all at the same time.