this post was submitted on 02 Jun 2025
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There are extra considerations for being given shares in lieu of direct income that get complex fast, but could be done. The real problem is that shares appreciating in value lets them use the stocks for collateral without triggering any income taxes on the value.
I feel like using stock as collateral to get a loan should count as income or something that gets taxed. It's not because you technically haven't realized the gain, but you kind of have in practice.
I know the idea is that stocks are used as collateral like property is, but stock value is so volatile it should be excluded.