25 sats \ 1 reply \ @pillar 7 Oct 2022 \ parent \ on: Loan to buy Bitcoin bitcoin
If you report under a negative tax regime, that will definitely take a dent off your profit.
You are 100% guaranteed to see your loan stack get reduced from its initial size, yes. But any amount you have left after paying the loan is benefit.
Agreed, anyone should give plenty of thinking to something like this, but people often don't. To that matter, people even do it with mortgages, as history has proven time and again. It always blows my mind when someone close to me gets into a mortagage without having ran a single spreadsheet to analyze things. So yes, I concur that this idea is not fit for most.
Another thing depending on country you could have fiat in an offset account that reduces interest while it sits waiting to be turned to btc
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