Buy, Borrow, Die: How Billionaires Pay 0% Tax on $100 Billion (The Legal Loophole)

How do billionaires with assets worth over $100 billion live lavishly without ever paying a cent of income tax on that wealth? We dive into the most powerful legal loophole in the tax code and reveal how the "Buy, Borrow, Die" strategy works, solving the ultimate problem of the rich person's fear of loss (taxes). In this high-dopamine short, we break down the three-step mechanism: Buy: A billionaire acquires an appreciating asset (stock, real estate). Borrow: They never sell the asset to avoid capital gains tax. Instead, they take out tax-free loans against the appreciating value, which they use to fund their mansions and yachts. A loan is not income, so it is 0% tax. Die: This is the final, brilliant trick. The asset's "cost basis" resets upon death. All the untaxed growth accumulated over decades is legally wiped clean, forever, allowing their children to inherit a massive fortune tax-free. Understand this financial mechanism to see how the world's wealthiest individuals manage their money and secure their legacy. Subscribe to How It Works for more secrets about the science behind finance and everyday life! Timestamps: 0:00 - The 0% Tax Hook 0:08 - The Three-Step Strategy 0:15 - Step 1: Buy (Acquire the Asset) 0:25 - Step 2: Borrow (The Tax-Free Income) 0:40 - Step 3: Die (The Cost Basis Loophole) 0:50 - The Tax Bill is Wiped Clean Hashtags #howitworks #buyborrowdie #billionairetaxes #taxloophole #richpeople #costbasis #financialliteracy