Comment by WarmWash

I'm someone who uses the same "loophole" the wealthy use to "avoid" paying taxes. Turns out you really only need around ~$100k to unlock it, and you still will pay ~0.5% interest over the overnight lending rate. But it's about as rock bottom as any non-united-states-government will get a dollar denominated loan for.

But it is not a tax dodging scheme. It's a tax deferral scheme wrapped in a risk-on loan package, that is used almost entirely to maintain ownership of a company rather than to defer taxes. On smaller scales you can use it to unlock money tied up in stocks, if you think the stock will keep going up (if the stock falls, you now might get margin called as well as coming out worse then just getting a regular loan).