Interesting delema
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CAUTION!!!
You will have to declare the retail value of the car as INCOME and pay federal and state taxes (in cash) on that amount!! If you do as airgate suggested, you would still have a tax liability but I'm not sure how it would be computed. Don't forget about property taxes too!
Take the cash, put the maximum amount in a tax deferred plan and invest the rest in securities or income producing real estate. In just a few years, the return on the investment will make your car payment for you!!
You will have to declare the retail value of the car as INCOME and pay federal and state taxes (in cash) on that amount!! If you do as airgate suggested, you would still have a tax liability but I'm not sure how it would be computed. Don't forget about property taxes too!
Take the cash, put the maximum amount in a tax deferred plan and invest the rest in securities or income producing real estate. In just a few years, the return on the investment will make your car payment for you!!
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Joined: Jan 2001
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From: Mish-she-gan
MyBad, that's sounds like the best reasoning yet. I'm no tax guy but it seems odd that I could take the cash and at the same time roll it into a tax deferral plan... it's not like it would be a 401k plan.
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David
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Dec 10, 2001 12:57 PM