Getting a loan on my Bitcoin to buy 50% of a house
Help me do a sanity check on my plan.
I own 26 Bitcoin that I bought in 2013. Never touched it. I own a house currently with a mortgage at 2.75%. Me and my partner want to go 50/50 on a bigger house. My portion of the house will be about $400k, we are going to put my money as 40% down payment, and the other 10% i owe i will use to renovate the house. I also have 400k in tradfi. One big concern I have is paying capital gains. If i sell my stocks and/or bitcoin I will have to pay significant capital gains. If i take a loan out against my bitcoin, I will pay 0 taxes. My idea is carry the loan for 6-8 years. Every year i can sell up to 48k capital gains free. So every year starting next year i will sell 48k worth of bitcoin and not pay taxes on it and apply it to my loan till its paid off. I am not too concerned about getting liquidated on the loan, if the market turns south for a few years cause i can always deposit more bitcoin collateral to keep my LTV below the thresehold. In the meantime time I will rent out my current house and make positive cash flow on that. And then live in the new house mortgage free. (My partner is financing his 50% for himself). So in the meantime time i get one house getting paid for by the renters, plus cash flow. And i get to live in the new house without payment. (We will split utilities, taxes and insurance.) Did I find a good loop hole to avoid taxes? Am I missing something? Is this a good plan?
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