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+--- Thread: Want to buy Bluebird (/showthread.php?tid=6018)
Want to buy Bluebird - Gregory OConnor - 11-27-2007 13:26
Leroy, I still think the best 'write off' is 'a day off'. Too much
effort and energy to reduce taxable income via maxamizing the
expense variable. I look forward to a time when I can minimize
income and be relaxed and comfortable. State audits are cleaning up
on folks that write off internet no stax purchases and depreciate
out of state vehicles.
GregoryO'Connor
94ptRomolandCa
. --- In WanderlodgeForum@yahoogroups.com, Leroy Eckert
>
> One needs a simultanious equation to figure out the tax man. There
are far to many variables. By the way, those points on the credit
card which allow you to fly free aren't free. It is taxable is
income. After all, the good folks in DC need their check every other
week for the rest of their life. Of course, it makes no difference if
one is never audited.
> Nothing is free in life, it just appears that way. lol
>
> Jon
WanderlodgeForum@yahoogroups.com, "Jon"
> >
> > --- In WanderlodgeForum@yahoogroups.com, "Gregory OConnor"
> >
> > >
> > > If you want it , buy it. If you cant afford it, borrow it.
> > >
> > > I understood 'Good reasons to finance stories' were
> justifications
> > > for making a financed purchase. A reflective look at my
position
> > > reveal that my "financing is for idiodt theories" ARE healing
> > > justifications wence turned down for a loan.
> > >
> > >
> > >
> > > GregoryO'Connor
> > > 94ptRomolandCa
> > > "Motorhomes with slides are for idiots"
> > >
> > >
> > > --- In WanderlodgeForum@yahoogroups.com, "Ryan Wright"
> > >
> > > >
> > > > On Nov 23, 2007 1:35 PM, martingregg598
wrote:
> > > > >
> > > > > Financing may be the way to go. Let's say that you are
going
> to
> > > buy a
> > > > > $100,000 plus BB. If you get a 20 year note at 6%
interest
> for
> > > 100g,
> > > > > the unit qualifies as a second home and you can deduct
the
> > > interest,
> > > > > and you leave your 100g properly invested returning an
> average
> > > of say
> > > > > 10 %, you are making a 4%- plus gain every year on your
100g
> > > > > (depending on your specific tax situation).
> > > >
> > > > Sort of, not exactly. You need to take money out of that
$100g
> > every
> > > > month to make the payments on the coach, so you're going to
> slowly
> > > > dwindle it down, reducing your return. Unless you make the
> > payments
> > > > out of your income, in which case I don't think you'll be
all
> that
> > > > well off. Follow me here:
> > > >
> > > > In your example the payment would be $716.43 per month. If
you
> > take
> > > > that same money and invest it at 10% over 20 years instead
of
> > paying
> > > > it to the bank, compounded monthly you'd have almost $550k.
> > > >
> > > > On the other hand, if you leave your $100k in the bank for
20
> > years
> > > > and don't pay any extra into it because you're making
payments
> on
> > > the
> > > > coach, at the end of the 20 years you'd have about $730k.
> > > >
> > > > Now 730 - 550 = $180k. Interestingly enough, at the end of
the
> 20
> > > > years you'll have sent about $172k to the bank to pay for
your
> > $100k
> > > > coach. Which leaves you only $8,000 ahead by financing it
and
> > > keeping
> > > > your money in the bank.
> > > >
> > > > Let's look at the risk you get for your $8,000: You risk an
> income
> > > > crisis and not having the ability to repay your loan. If the
> > market
> > > > happens to be down about the same time, which is often the
case
> in
> > > > financial hardships (Murphy's Law), you risk losing your
> > portfolio
> > > as
> > > > you yank everything out in a down market to get the
creditors
> off
> > > your
> > > > back. You risk huge spikes in interest rates and fees should
> you
> > > miss
> > > > a payment by accident.
> > > >
> > > > Is it worth it? Not to me. Assuming you have the discipline
to
> > > > re-invest the money you would have otherwise sent to the
bank,
> I'm
> > > > paying cash for the coach and rebuilding my portfolio out of
my
> > > > income.
> > > >
> > > > Now, if you're actually able to itemize the interest out on
your
> > > > taxes, you might -- MIGHT -- be able to recover enough to
make
> it
> > > > worth the effort. Typically, though, that isn't the case.
The
> > > standard
> > > > deduction will typically be higher than the interest on the
> coach
> > so
> > > > unless you have other major things to itemize, you're no
money
> > ahead
> > > > with the tax man.
> > > >
> > > > In my experience, financing for the interest or tax savings
is
> > > usually
> > > > a negative to zero sum game, or otherwise close enough as to
> make
> > it
> > > > not worth the risk and/or the hassle.
> > > >
> > > > -Ryan
> > > >
> > >
> > I guess I'm from the old school of financing and that is pay for
it
> > with cash!!! I really believe that is what is wrong with America
> > economy today and that is everything is on time payments. What
> > happen to the days that when you bought something and you paid
for
> it
> > or you did not get it? Oh well if a person wants to pay 10
percent
> > interest on anything than go for it but for me its cash only and
> save
> > paying the interest. Product of the depression with a
depression
> > attitude! Jon
> >
> > Jon
> > Rebel Bird
>
> On that cash items I was talking about I do use my credit card but
> pay it oft at the end of the month. One big advantage to using
the
> credit card is that I have saved up enough points to take two
round
> trip flight anywhere in the USA for FREE this year. Jon
> Rebel Bird
> 1978 Special
>
> >
>
>
>
>
>
>
> Leroy Eckert
> 1990 WB-40 "Smoke N Mirrors"
> Dahlonega, GA
>
> ---------------------------------
> Be a better pen pal. Text or chat with friends inside Yahoo! Mail.
See how.
>
> [Non-text portions of this message have been removed]
>
Want to buy Bluebird - Gardner Yeaw - 11-27-2007 14:18
Have you seen the new tax form? It only has two lines.
1. How much did you make last year
2. Send in in.
Gardner
78FC33
--- In WanderlodgeForum@yahoogroups.com, "Gregory OConnor"
>
> Leroy, I still think the best 'write off' is 'a day off'. Too much
> effort and energy to reduce taxable income via maxamizing the
> expense variable. I look forward to a time when I can minimize
> income and be relaxed and comfortable. State audits are cleaning
up
> on folks that write off internet no stax purchases and depreciate
> out of state vehicles.
>
> GregoryO'Connor
> 94ptRomolandCa
>
> . --- In WanderlodgeForum@yahoogroups.com, Leroy Eckert
>
> >
> > One needs a simultanious equation to figure out the tax man.
There
> are far to many variables. By the way, those points on the credit
> card which allow you to fly free aren't free. It is taxable is
> income. After all, the good folks in DC need their check every
other
> week for the rest of their life. Of course, it makes no difference
if
> one is never audited.
> > Nothing is free in life, it just appears that way. lol
> >
> > Jon
> WanderlodgeForum@yahoogroups.com, "Jon"
> > >
> > > --- In WanderlodgeForum@yahoogroups.com, "Gregory OConnor"
> > >
> > > >
> > > > If you want it , buy it. If you cant afford it, borrow it.
> > > >
> > > > I understood 'Good reasons to finance stories' were
> > justifications
> > > > for making a financed purchase. A reflective look at my
> position
> > > > reveal that my "financing is for idiodt theories" ARE
healing
> > > > justifications wence turned down for a loan.
> > > >
> > > >
> > > >
> > > > GregoryO'Connor
> > > > 94ptRomolandCa
> > > > "Motorhomes with slides are for idiots"
> > > >
> > > >
> > > > --- In WanderlodgeForum@yahoogroups.com, "Ryan Wright"
> > > >
> > > > >
> > > > > On Nov 23, 2007 1:35 PM, martingregg598
> wrote:
> > > > > >
> > > > > > Financing may be the way to go. Let's say that you are
> going
> > to
> > > > buy a
> > > > > > $100,000 plus BB. If you get a 20 year note at 6%
> interest
> > for
> > > > 100g,
> > > > > > the unit qualifies as a second home and you can deduct
> the
> > > > interest,
> > > > > > and you leave your 100g properly invested returning an
> > average
> > > > of say
> > > > > > 10 %, you are making a 4%- plus gain every year on
your
> 100g
> > > > > > (depending on your specific tax situation).
> > > > >
> > > > > Sort of, not exactly. You need to take money out of that
> $100g
> > > every
> > > > > month to make the payments on the coach, so you're going
to
> > slowly
> > > > > dwindle it down, reducing your return. Unless you make
the
> > > payments
> > > > > out of your income, in which case I don't think you'll be
> all
> > that
> > > > > well off. Follow me here:
> > > > >
> > > > > In your example the payment would be $716.43 per month.
If
> you
> > > take
> > > > > that same money and invest it at 10% over 20 years
instead
> of
> > > paying
> > > > > it to the bank, compounded monthly you'd have almost
$550k.
> > > > >
> > > > > On the other hand, if you leave your $100k in the bank
for
> 20
> > > years
> > > > > and don't pay any extra into it because you're making
> payments
> > on
> > > > the
> > > > > coach, at the end of the 20 years you'd have about $730k.
> > > > >
> > > > > Now 730 - 550 = $180k. Interestingly enough, at the end
of
> the
> > 20
> > > > > years you'll have sent about $172k to the bank to pay for
> your
> > > $100k
> > > > > coach. Which leaves you only $8,000 ahead by financing it
> and
> > > > keeping
> > > > > your money in the bank.
> > > > >
> > > > > Let's look at the risk you get for your $8,000: You risk
an
> > income
> > > > > crisis and not having the ability to repay your loan. If
the
> > > market
> > > > > happens to be down about the same time, which is often
the
> case
> > in
> > > > > financial hardships (Murphy's Law), you risk losing your
> > > portfolio
> > > > as
> > > > > you yank everything out in a down market to get the
> creditors
> > off
> > > > your
> > > > > back. You risk huge spikes in interest rates and fees
should
> > you
> > > > miss
> > > > > a payment by accident.
> > > > >
> > > > > Is it worth it? Not to me. Assuming you have the
discipline
> to
> > > > > re-invest the money you would have otherwise sent to the
> bank,
> > I'm
> > > > > paying cash for the coach and rebuilding my portfolio out
of
> my
> > > > > income.
> > > > >
> > > > > Now, if you're actually able to itemize the interest out
on
> your
> > > > > taxes, you might -- MIGHT -- be able to recover enough to
> make
> > it
> > > > > worth the effort. Typically, though, that isn't the case.
> The
> > > > standard
> > > > > deduction will typically be higher than the interest on
the
> > coach
> > > so
> > > > > unless you have other major things to itemize, you're no
> money
> > > ahead
> > > > > with the tax man.
> > > > >
> > > > > In my experience, financing for the interest or tax
savings
> is
> > > > usually
> > > > > a negative to zero sum game, or otherwise close enough as
to
> > make
> > > it
> > > > > not worth the risk and/or the hassle.
> > > > >
> > > > > -Ryan
> > > > >
> > > >
> > > I guess I'm from the old school of financing and that is pay
for
> it
> > > with cash!!! I really believe that is what is wrong with
America
> > > economy today and that is everything is on time payments.
What
> > > happen to the days that when you bought something and you
paid
> for
> > it
> > > or you did not get it? Oh well if a person wants to pay 10
> percent
> > > interest on anything than go for it but for me its cash only
and
> > save
> > > paying the interest. Product of the depression with a
> depression
> > > attitude! Jon
> > >
> > > Jon
> > > Rebel Bird
> >
> > On that cash items I was talking about I do use my credit card
but
> > pay it oft at the end of the month. One big advantage to using
> the
> > credit card is that I have saved up enough points to take two
> round
> > trip flight anywhere in the USA for FREE this year. Jon
> > Rebel Bird
> > 1978 Special
> >
> > >
> >
> >
> >
> >
> >
> >
> > Leroy Eckert
> > 1990 WB-40 "Smoke N Mirrors"
> > Dahlonega, GA
> >
> > ---------------------------------
> > Be a better pen pal. Text or chat with friends inside Yahoo!
Mail.
> See how.
> >
> > [Non-text portions of this message have been removed]
> >
>