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>He avoids paying taxes on the sale of stocks to finance the home. Can you elaborate on that?

• ihsw 10y ago
  Like-kind exchange? Not exactly sure what the parent was referring to. https://en.wikipedia.org/wiki/Like-kind_exchange https://en.wikipedia.org/wiki/Like-kind_exchange
• gdubs 10y ago
  If you want to buy a million dollar home using shares, you have to liquidate them and pay capital gains. By getting a mortgage you lower the amount of income you 'realize' on a year-to-year basis, lowering your taxable income. There are details on capital gains vs income taxes, etc, but in general I think the point was that the less income you realize in a given year, the less taxes you'll pay.
  • DannyBee 10y ago
    "If you want to buy a million dollar home using shares, you have to liquidate them and pay capital gains. " Just to note: you don't :) In fact, if you wanted to pay all cash, and had enough shares, you'd generally take out a portfolio loan against the shares at some very low interest rate (probably not lower than current mortgage rates however) rather than sell the shares at all. Whether this is better/worse than a mortgage depends on various things.