alt Hacker NewsI want to do some improvements on my house. So I take out a home equity loan. Oops! Actually since my house is worth $500K more than when I bought it, now I have to pay $100K to the government since the gain is now realized by using the asset as collateral!
I mean most taxes like this have an 'above X amount' clause. Such as the gains you get taxed on when selling your home. California it's $500K in gains if you are married so extrapolating that your scenario would be covered.