| Author |
Message |
S. Long (Sml)
| | Posted on Monday, April 16, 2001 - 5:36 pm: | |
If you have a brokerage account you can borrow against any securities in the account, and deduct the interest (margin interest) from any long-term/short-term gains and/or losses. Rates are about 7.5% to "borrow" about $50k, and less as the amount borrowed increases. Needless to say I wouldn't margin any security that trades with high degrees of volitility as you may be called. Rule of thumb: don't margin in excess of 25% of portfolio. |
BretM (Bretm)
| | Posted on Sunday, April 15, 2001 - 10:03 pm: | |
I paid all cash for my 308GTSqv. There are certain tax advantages and it helps when making a deal. There are a lot of Ferrari financing compainies in the FCA market letter and Forza, but I don't know how good they are. |
'75 308 GT4 (Peter)
| | Posted on Sunday, April 15, 2001 - 8:02 pm: | |
I paid cash....But its only a GT4! J |
Rob Lay (Rob328gts)
| | Posted on Sunday, April 15, 2001 - 5:12 pm: | |
The home equity loan I just got is only 6.35%, the only downside is the apx. 1.5% upfront fee. However, that is the only fee and most equity loans have a fee closer to 3-4%. The tax savings I get the first year will almost pay for the one time fee. It's very smart, although buying it out right would be nice. |
David Jones (Dave)
| | Posted on Sunday, April 15, 2001 - 3:41 pm: | |
Or you could do what I did.
Work extra hard, save your money for a few years, and then pay cash for it. It's a real good feeling knowing that you'll never get in hawk or have to make a payment on any of the toys....
Something my wife would not allow anyways, If I buy a new toy I pretty much have to pay cash from extra money I have put aside. I could just see the look on her face if I told her we would be making payments on a new 360 spider, it just would'nt fly... So I silently save for my next toy, a Lola T70 which will take a few years of working my ass off, But all said and done... It's a good feeling when come time to enjoy the fruits of your labor, you can relax by sliding you ass into the seat of some four wheeled, instant smile fixing, •••• hardning excelerating, make you wana' say,
OH Hell Yes, kind of ride, .. and know it's all paid for.....
Good Luck.
Dave |
Warren E. Smith (Magoo)
| | Posted on Sunday, April 15, 2001 - 3:24 pm: | |
You can get a home improvement loan to rec. room your basement or whatever, then change your mind after you've gotten it. Whose business is it what you do with the money. The equity is in the house or you wouldn't have gotten the loan,that is their collateral. Then just pay it back at home improvement rates. The interest has to be less and you can spread it out over a longer period of time making the payments less than if you took out a used car loan. This is done every day, and the banks know it. Deduct as it is written. The guy who walks in the bank and asks for a used car loan, either has no collateral or doesn't know any better. Anyway you look at it, it's the best way to go. Just be sure you get enough in case there is something you want to do to your house. You may not be able to go back to the well again.MAGOO |
'75 308 GT4 (Peter)
| | Posted on Sunday, April 15, 2001 - 2:42 pm: | |
Craig, they just recently had on the news (NBC I think) that the IRS are cutting down on audits...only going after major cheats, not the little-white-lie cheats. Not enough funds and man-power to do the audits. |
Craig Dewey (Craigfl)
| | Posted on Sunday, April 15, 2001 - 1:32 pm: | |
I'm not saying you can't do it.... I'm only saying there is a risk if your audited. |
Doug Meredith (Doug308)
| | Posted on Sunday, April 15, 2001 - 1:19 pm: | |
With good credit you can get an easy loan through Peoplefirst.com. For my '84 I got a loan until I sold the Porsche. Took 10 minutes for approval over the internet and my loan was for 60 months at 8.64%. They only parameters they look at are new or used and purchasing from individual or dealer. My bank that I have been with for 8 years would have charged me 13+% because the car was so old. |
michael (Scmguru)
| | Posted on Sunday, April 15, 2001 - 11:38 am: | |
I've got a house.. no where near paid off.. I'm going to use the money as an improvement for my house.. I'm sure the garage will be VASTLY improved.. ;)
If nothing else.. it's a way to get an exotic car loan for 8-8.5% for 10Y rather than 12+% |
Ben Lobenstein 90 TR (Benjet)
| | Posted on Sunday, April 15, 2001 - 11:36 am: | |
If you already own a home and it's paid off, you can get a home loan (or a second loan if it ain't already paid off), and do whatever you want with the money. The IRS doesn't follow that money trail, when you deduct the interest on your tax forms, there has to be a house there (somewhere)in order to deduct it. I would think that goes for the lender as well, not just the IRS.
If you don't own a home/house/condo/property/mobile home/etc. then the above means nothing to you.
-Ben |
Rob Lay (Rob328gts)
| | Posted on Sunday, April 15, 2001 - 11:35 am: | |
I just transferred my car loan into a home equity and the only thing the IRS knows about the home equity loan is it's for a house. You give up home equity, but gain a low interest rate and the deduction. |
michael (Scmguru)
| | Posted on Sunday, April 15, 2001 - 11:26 am: | |
Craig,
So even though it's a home equity loan, I can't write off the interest? I was told I could.. hmm
Ultimately, if the home eq. loan co is my current mortgage writer.. how would they know it's not for improvements on my home? |
Craig Dewey (Craigfl)
| | Posted on Sunday, April 15, 2001 - 11:16 am: | |
Too bad... Ihe IRS already thought of that one and won't allow you to write off the interest if it's not for a home. You will need to get very creative to get it past them....
Of course you could claim it as a second home, but then you would need to park it on a lot and that plumbing connection and all....
OR--- You could use it as a business vehicle but they limit the deductions on those now too. |
michael (Scmguru)
| | Posted on Sunday, April 15, 2001 - 11:00 am: | |
I've been looking at various ways to fund my 1st Ferrari and came up with something interesting..
Rather than getting a normal car loan.. Wouldn't I be better off getting a home equity loan for the car, paying it off in 7-10 years and writing off the interest?
I'm getting hammered in taxes and figured out that the interest deduction alone brings my effective car payment down significantly + the interest rate on a home equity loan is less..
Any opinions? |
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