Does anyone have experience funding their IBC by issuing long-term zero-coupon bonds?
The initial funding thus becomes debt that can be bought back (or paid back at bond maturity). This means that the original capital can be returned without triggering taxable income or capital gain, and only pay-out in excess of the initial capital would be a taxable gain.
Keen to hear if anyone else has implemented such a setup!
The initial funding thus becomes debt that can be bought back (or paid back at bond maturity). This means that the original capital can be returned without triggering taxable income or capital gain, and only pay-out in excess of the initial capital would be a taxable gain.
Keen to hear if anyone else has implemented such a setup!