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#901 |
Fish are scared of me
Join Date: Nov 2001
Casino cash: $450477
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My frame of thought has always been to use other peoples money. if you put a big down payment on a property then you have all that money tied up when it could be used to generate more income.
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Posts: 40,721
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#902 |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4072680
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That's true. I could be using it to start my own hog farm.
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Posts: 70,530
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#903 | |
Politically Incorrect
Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $1491110
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Quote:
You NEVER want to buy a rental for tax reasons, you want to buy it to make money and positive cash flow even if it's $25 a month. Taking money out of your pocket every month to pay for someone else to live in your home is ludicrous. Great summary! ![]()
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"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~ ![]() "The men who drafted Patrick Mahomes" ![]() |
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Posts: 51,581
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#904 |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4072680
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That was me. Thinking about all the potential headaches certainly has me leaning towards just dumping the money in the 401k.
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Posts: 70,530
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#905 | |
Politically Incorrect
Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $1491110
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Quote:
Location is paramount no matter how cliche
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"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~ ![]() "The men who drafted Patrick Mahomes" ![]() |
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Posts: 51,581
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#906 |
In Search of a Life
Join Date: Jul 2009
Casino cash: $1744064
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I'm looking to eventually get into the commercial real estate side of things. Right now, I rent my dental office. It's the same price as the tenant has paid there since 1981, so I'm not in a hurry to move. But I would eventually like to own my building I think.
My plan is to eventually have a little 3 offie strip mall, with my office on the end and rent out the 2 next to me. |
Posts: 82,086
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#907 | |
MVP
Join Date: Aug 2000
Location: Lee's Summit
Casino cash: $4821637
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Posts: 8,287
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#908 | |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
Casino cash: $2038491
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Quote:
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Active fan of the greatest team in NFL history. |
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Posts: 142,320
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#909 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
Casino cash: $1034734
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Quote:
You report rent income on a schedule E. All your expenses are account ted for on the schedule E so you're taxed on the net. If you finance a rental don't put the interest A (itemized deductions). Unless you can get a far better rate on your house than a rental but even then you risk losing the deduction for the rental at all if you don't get to the standard deduction. RE: paid off house. Does t matter how it happened, it's still a big deal. |
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Posts: 57,549
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#910 | |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4072680
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Quote:
Something else occured to me, lewdog mentioned that the max we can put in the 401k is $18,000/yr, and the Mrs' pension buyout will well exceed that. So her idea of putting it all in 401k won't work then. Maybe we should just take the tax hit and buy a Corvette. /shrug |
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Posts: 70,530
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#911 | |
Supporter
Join Date: Apr 2007
Location: Scott City KS
Casino cash: $1034734
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Quote:
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Posts: 57,549
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#912 | |
The Maintenance Guy
Join Date: Sep 2005
Location: Renovated Bugeater Estate
Casino cash: $4072680
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Quote:
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Posts: 70,530
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#913 | |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
Casino cash: $2038491
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Quote:
I would definitely go that route. If you use it to buy rental property, it's the equivalent of paying 45 percent above the asking price since you're going to get taxes and penalties. It is possible to buy a rental from within your IRA, but it's really hard to do. I looked into it once.
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Active fan of the greatest team in NFL history. |
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Posts: 142,320
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#914 | |
To the Game
Join Date: Oct 2003
Casino cash: $7193516
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Quote:
Also, with a small business with no employees (other than you and your spouse) you can each contribute up to $18k like you said, but then the business can also contribute 25% of your salary up to $38k, giving you a total contribution limit of $56k. That's for each of you, too, so that's $112k contribution you could make to a traditional or ROTH 401k if you so choose to (many would argue there are better investment opportunities with that much cash.) Also, with a small business you can hire your kids if you have any and get all sorts of tax breaks there, too. I've gone into detail about some of these things in threads under DC. Nothing beats owning a business when it comes to keeping your money in your own pocket. Keep working your job, start a small business on the side, and you will get to keep a LOT more of your earned income from both the job and your small business. This extra money can be used to get out of debt more quickly, and then start buying more assets that generate more cash flow...sending you on lovely journey of wealth building. |
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Posts: 2,124
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#915 | |
In Search of a Life
Join Date: Jul 2009
Casino cash: $1744064
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Quote:
Although, my plan is to avoid retail stuff if I can. An insurance agency, maybe a pharmacy etc. |
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Posts: 82,086
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