cricketman
Member
Also @cricketman, if the shares are in a pretax account, the IRS will treat such use of shares as a distribution and you'd owe income tax on the entire amount. I couldn't find the relevent citing in the code but it's described here and elsewhere: Can You Use IRA Accounts as Collateral?
Thanks for the advice everyone
I have always gone along with the thought that I could be transparent about things such as share holdings on public forums as long as I am super careful about not revealing anything that could identify me.
For example, someone asked me what company I worked at a while ago I thought best not to answer that question as it's a small company.
The good thing about being transparent is that already I have had some useful comments about the nature of the credit line against the value of the shares. So I now know what questions to ask and what clauses to look out for. It may make sense to have a traditional mortgage instead.
Thanks everyone. I check this forum almost everyday to learn things not only about tesla but about how investments and the world works. It is mind blowing to think about the quality of information that one has access to nowadays although the key of course is to be able to tell quality information apart from all the rubbish!