This is one of the riskiest thing I have seen on the internet, because, debt is something I don’t like having, but if you are living in a country where taxing can be frustrating, you will have no other choice but to look for a means to maneuver your way around it. I live in Nigeria where taxing is not really as frustrating as other countries. So I don’t really have to worry about tax, because tax is being deducted as VAT(Value Added Tax) when you purchase things online or offline. Even billionaires in my country don’t have to bother about tax, they usually have their way around it, the system is not transparent enough. 

![969ACCA9A8DD42BBB5F10D1599781EE0.png](https://i.imgur.com/sleN6EY.png)
But coming across a content where debt can be used to create tax free wealth got my mind blown. This is just how we saw Elon Musk, wanting to use debt to buy Twitter, I will explain that later. So as a billionaire, who wants to spend money, but doesn’t want to pay tax, they can easily buy shares or stocks, remember shares or stocks can not be taxed based on unrealized gains, so you can’t tax them because you haven’t sold them. They get taxed after you sell them, but here is the catch, you can use them to take loans, then spend those loans and still not get taxed because debt is tax free!!! Isn’t that mind blowing? So you can just use your money to buy stocks and shares, use those stocks and shares as collateral to take loans, spend your loans, pay your interest, and you are tax free. You can decide to use those loans to invest and make more money, so you can pay the interest of your loan confidently. 

It’s just like taking a loan to buy a house, put the house on rental, then make money through rental payments, these rental payments will be used to pay your loan interest, and probably be saved to repay the loan. Doing this, you can increase your credit score, then take more loan and repeat the same process, this way you have streams of income, you have assets, and you have a debt that lets you avoid tax. This is something the rich know and are utilizing it to the fullest, Elon Musk wanted to utilize it. 


Elon musk is the CEO of Tesla and has a lot of stock and shares in Tesla, his wealth is measured in Tesla stock, but he can’t be tax for that, but he can use it to take loans and invest. So it’s easy to make more money with this, take loans, use the stock as collateral, buy Twitter and he owns Twitter and can probably pay the loan anytime he wants to. 

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