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34 votes
Accepted

Can you avoid capital gains tax by taking out a loan and not repaying debt?

Yes, you can borrow tax-free Bitcoin (or really, any currency not your home currency) is a security like a stock or bond. Whenever you take a loan using a security as collateral, that is not a taxable ...
Harper - Reinstate Monica's user avatar
23 votes

Is it legal for credit card companies to terminate a credit card?

Is it legal for Amex to close an account assuming they have no other legal reason and it's purely capricious behavior? Yes. A credit card can indeed terminate a card at any time. A credit limit is ...
ohwilleke's user avatar
  • 220k
20 votes

In a divorce, in the case of a refinance, who pays for the refinance?

The person who bears the refinancing costs would be determined by mutual agreement in a separation agreement, or would be determined by a court in a decree in its discretion, which is extraordinarily ...
ohwilleke's user avatar
  • 220k
16 votes

is estate responsible for debt of car-loan co-signed by the decedant?

Yes, subject to the deadline for presenting claims to the estate of the decedent (within sixty days of publication of public notice). If a timely claim is filed against the estate, Article 9 of the ...
ohwilleke's user avatar
  • 220k
13 votes
Accepted

is estate responsible for debt of car-loan co-signed by the decedant?

A co-signer is equally liable for the debt, so the loan company can go after the grandson or your mother for the remainder of the debt. He would have gotten a letter from the creditor saying that the ...
user6726's user avatar
  • 215k
9 votes

Can you avoid capital gains tax by taking out a loan and not repaying debt?

This scheme merely defers the CGT. The gain occurs when the bitcoin is sold to pay off the debt, thereby realising its value for the original owner by cancelling the debt of $100k. At this point CGT ...
Paul Johnson's user avatar
  • 13.6k
8 votes
Accepted

Can you defer capital gains tax with margin trading?

united-states They thought of that. See IRS Pub 550, page 36: You are treated as having made a constructive sale of an appreciated financial position if you: • Enter into a short sale of the same or ...
Nate Eldredge's user avatar
7 votes
Accepted

Can the lender of a collateralised loan take more than the collateral upon default?

I'm pretty sure the bank could go after the owner for any difference between the unpaid loan balance and what they're able to sell it for. Incorrect. The news report states "it ceased making ...
ohwilleke's user avatar
  • 220k
7 votes
Accepted

What are the consequences or risks of signing a document with a future date?

what are the consequences/risks of writing a future date on a document? In the context of the OP this is harmless. Indeed, the person signing them can probably revoke those signatures prior to ...
ohwilleke's user avatar
  • 220k
5 votes

Living in permanently growing debt to your own company

Non-commercial loans aren’t loans A company can legitimately lend shareholders money if it does so on commercial terms - over a realistic time frame at commercial interest and receives regular ...
Dale M's user avatar
  • 213k
5 votes

Refused Financing for new car loan due to charge off from bankruptcy 11 years ago

A bankruptcy discharges your debt and that bankruptcy goes on your credit report. Now, under the "Fair Credit Reporting Act" (FCRA), that information may only stay on your record up to 10 ...
Ron Beyer's user avatar
  • 9,215
5 votes

I lent someone money then they moved out of state and stopped communicating. How do I track down this individual for prosecution?

Find him yourself Anything else will cost money. As to how, the 21st century has made this much easier. Find his digital footprint and use that to find him. If you don’t know how to do this, hire a ...
Dale M's user avatar
  • 213k
5 votes

Credit union holding car note, refuses to provide details of how payments have been applied

They are probably not required to provide online access at all. They are probably required to provide some sort of written statement, unless you have waived that in favor of online or electronic ...
David Siegel's user avatar
4 votes

A deceased signed a car loan on behalf of a relative with poor credit- what happens?

When a debtor dies, with the debt outstanding, the debt enters default. The estate has to solve the outstanding debt before paying out any inheritances: The estate can and does pay up. This ...
Trish's user avatar
  • 40.4k
4 votes

Can you avoid capital gains tax by taking out a loan and not repaying debt?

Now the loan provider has no choice but to sell of my bitcoin to get their $100k back, and it looks like I'm after avoiding capital gains tax. No, you're not avoiding it at all. By losing your ...
Greendrake's user avatar
  • 27.6k
4 votes

Can you demand payment on a documented personal loan with no due date?

united-states In the US, such an IOU may be grounds for suit The Uniform Commercial Code (UCC) which has been enacted (with minor variations) in every UIS staye, governs such matters. UCC § 3-104 ...
David Siegel's user avatar
4 votes

Collapse of a money lending company

I find the "is collapsing" statement troubling. Companies grow, shrink, and restructure all the time. Nelnet might be coming apart, or somebody might be trying to generate clicks for a news ...
o.m.'s user avatar
  • 18.3k
4 votes

Collapse of a money lending company

The debt doesn't go away, it just will change hands. Debts are a commodity that can be sold. And in a bankruptcy, debts owed to a company are often sold at a loss to generate revenue to cover the ...
Trish's user avatar
  • 40.4k
4 votes

Loan contracts with very high interest: are they even legally binding?

In canada, an effective annual rate that exceeds 60% is a criminal interest rate (Criminal Code, s. 347). A person who agrees to receive such interest is guilty of an offence. In british-columbia, ...
Jen's user avatar
  • 59.1k
4 votes

What is the legality of a 0% interest unsecured loan?

A below market interest rate loan is deemed to be a gift equal to the interest rate implied in law (under 26 U.S.C. § 7520, which is 120% of the Applicable Federal Rate, or the Applicable Federal Rate,...
ohwilleke's user avatar
  • 220k
3 votes

Living in permanently growing debt to your own company

For example if you are a British actress and try that kind of stunt, you will suddenly find HMRC coming after you and all newspapers reporting about it (and nobody feeling sorry for you when HMRC ...
gnasher729's user avatar
  • 34.3k
3 votes

Could government legally temporatiliy halt rent/mortgage/interest payments for the benefit of the greater economy?

It depends on the applicable state laws granting emergency powers. The most recent decree in Washington State suspends garnishments and post-judgment interest. The governor was given broad powers by ...
user6726's user avatar
  • 215k
3 votes

How Are LLC Liabilities Prioritized? e.g. Are Bank Loans Paid Before Legal Settlements?

Is the debt secured? Lenders can lend money secured or unsecured. If they lend it secured then what is the security? That is, what property secured the loan? For your example that could be a mortgage ...
Dale M's user avatar
  • 213k
3 votes
Accepted

What happens to loans issued by a startup if the startup fails?

Do I have rights to the loan as an asset of the company? You, no. It’s an asset of the company and,as such, will be liquidated by the liquidator for the benefit of the creditors of the company. ...
Dale M's user avatar
  • 213k
3 votes

what is "just compensation" during eminent domain?

If a farmer had recently built a barn (within the past year) that cost 45,000 dollars (paid for from a loan), on a piece of property that was originally 10,000 dollars(not paid for from a loan), ...
ohwilleke's user avatar
  • 220k
3 votes
Accepted

What regulations specify the loan and what regulations specify the credit under US law?

The terms are used in inconsistent and overlapping ways. Their meaning has to be determined from context. Words do not have universal meanings in all contexts in the law. A loan generally refers to a ...
ohwilleke's user avatar
  • 220k
3 votes
Accepted

Are US courts less likely to enforce the repayment of a loan if it is (ceteris paribus) without interest?

I've never seen that principle invoked in U.S. law. There are tax reasons not to make zero interest loans to related parties (unpaid interest at a low market rate is deemed income to the lender for ...
ohwilleke's user avatar
  • 220k

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