The super-rich avoid capital gains taxes by borrowing against their appreciating assets instead of selling them. This allows them to fund their lifestyle tax-free. Since assets are only taxed upon sale, this deferral becomes permanent if they hold the assets until death, when the cost basis resets for heirs.

The wealthy build wealth by buying assets, borrowing against them tax-free for living expenses, and then passing the assets to heirs with a "stepped-up basis" upon death. This maneuver effectively eliminates capital gains taxes for the next generation.

The ultra-wealthy avoid income and capital gains taxes by taking no salary and instead borrowing against their massive, unrealized stock holdings. This provides them with liquid cash for spending and investment while never triggering a taxable event, effectively hacking the tax code.

Assets like real estate provide income shielded by depreciation tax credits. Upon the owner's death, heirs receive a 'step-up in basis,' allowing them to sell the appreciated asset with no capital gains tax. This combination creates a powerful, tax-efficient intergenerational wealth transfer mechanism.

The wealthiest individuals don't have traditional paychecks. Instead, they hold appreciating assets like stock and take out loans against that wealth to fund their lifestyles. This avoids triggering capital gains or income taxes, a key reason proponents are pushing for a direct wealth tax in California to address this loophole.

A major wealth preservation strategy for the ultra-rich is borrowing against their appreciated public stock. This provides them with massive, tax-free cash liquidity for living expenses or new ventures, without ever triggering a taxable event like selling the stock.

The wealthy don't sell appreciating assets like stock to fund their lifestyles; they borrow against them at low interest rates. This "Buy, Borrow, Die" method avoids triggering capital gains taxes, allowing wealth to compound tax-deferred and widening the gap between asset owners and wage earners.

Instead of selling assets and triggering capital gains, the wealthy buy and hold assets like stocks. They then borrow against that portfolio tax-free for living expenses. When they die, a life insurance policy pays off the loan, allowing the original assets to pass to heirs tax-free.

The ultra-wealthy minimize taxes by buying equities, letting them compound tax-deferred, and then borrowing against their portfolio for liquidity. Upon death, the assets receive a step-up in basis, allowing heirs to inherit them without paying capital gains tax on the appreciation.