Buy, Borrow, Die: How the Wealthy Avoid Taxes

Fri, 17 Jul 2026 06:27:44 +0000

Buy, borrow, die is a wealth strategy in which someone buys appreciating assets, borrows against them for spending money instead of selling, and passes the assets to heirs at death — where a “step-up in basis” erases the built-up capital gains. Because loans are not taxable income and unsold assets never trigger capital gains, the approach lets large fortunes fund a lifestyle while paying little or no income tax. It is entirely legal under current U.S. law, and as of July 2026 it is at the center of a live political fight over how the ultra-wealthy are taxed.

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Buy, Borrow, Die: How the Wealthy Avoid Taxes