Hello, I posted the below on the buying a home forum and thought it might be beterr over here? Also after posting, I think I should add that the question is not whether to buy the home, it is whether to pay cash or set up the deal as outlined. any comments appreciated. I am considering buying a vacation home using the folowing and am interested in any thoughts as to what I may have missed or comments on its advisability (numbers changed for ease of analysis):background facts:Price 100 kliquid money to purchase 100kno traditional mortage available (75 rural acres, with manufacured home)Plan:set up NV corp.purchase 100 shares of corp at 1000 each.NV corp makes loan to me securing purchas of home n amount of 100kI pay 10% interest on loan to corp.Results(?):I can deduct 10k in interest from my personal taxes (assume 40% Tax made up of 31% fed and 8% state) = tax savings of 4000corp gets 10k in income (assume 15% fed tax no state tax and no deductions -- trying to be conservative here) = taxes of 1500net tax savings = 25008500 of my money now sitting in corp for its investment (but subject to some flavor of taxation at pay out from corp).Alternative:pay cash10,000 taxed at 40% leaves 6,00 for investment each year. Any thoughts? thanks. trying to get a handle on this to decidee what to do.
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