Give yourself illiquid shares of the startup that have a time-bound restriction before they are allowed to become liquid
Ok, but the problem is that unrealized capital gains are being used for disposable income by taking out loans using a tradeable asset as collateral. I suspect it would be much harder to get a loan using an illiquid asset like this one.
Some who has $900m in a truly illiquid investment and $100m in liquid assets is basically a paper billionaire. As long as $900m is illiquid they have the means of someone with only $100m, and I’m OK if the IRS treats them that way.
Ok, but the problem is that unrealized capital gains are being used for disposable income by taking out loans using a tradeable asset as collateral. I suspect it would be much harder to get a loan using an illiquid asset like this one.
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Some who has $900m in a truly illiquid investment and $100m in liquid assets is basically a paper billionaire. As long as $900m is illiquid they have the means of someone with only $100m, and I’m OK if the IRS treats them that way.