this post was submitted on 20 Oct 2024

113 points (97.5% liked)

Explain Like I'm Five

14397 readers

1 users here now

Simplifying Complexity, One Answer at a Time!

Rules

Be respectful and inclusive.
No harassment, hate speech, or trolling.
Engage in constructive discussions.
Share relevant content.
Follow guidelines and moderators' instructions.
Use appropriate language and tone.
Report violations.
Foster a continuous learning environment.

founded 2 years ago

MODERATORS

[email protected]

113

ELI5 How do rich people just hide their money in offshore bank accounts? Do they just call up the bank and say I want transfer such and money? How come the original bank doesn't catch on? (self.explainlikeimfive)

submitted 2 months ago by Don_Dickle to c/explainlikeimfive

34 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] Wxfisch 21 points 2 months ago

In addition, all the secured loans they take make them look on paper as though they are deeply in debt and that debt then is a tax write off. This further lowers their tax brackets so they pay even less. Add to this that in the US at least only income is taxed, all of the stocks, options, and other assets they hold are non-taxable since they aren’t cash; technically their value can (and does) change regularly and they can become worthless just as easily as they can gain value and so it was determined they aren’t income since nothing is realized until they are sold.