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#32
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"I believe that automobile have a celing on deductibiity"
Actually, its the other way around. A Hummer of a giant SUV gets better deductions than a small car because of its weight. I guess the IRS considers only real workers drive cars that heavy. Personally, if its got leather interior, its probably not an industrial vehicle. |
#33
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On 31 Aug 2005 17:01:29 -0700, "Robert M. Gary"
wrote: Its amazing to me that some people finance their personal aircraft. The monthly costs associated with owning an aircraft are so massive I can't imaging servicing a loan on top of that. -Robert, M20F Robert, There are all kinds of folks that do things for different reasons. A recent client of mine wrote a check for a $43M Gulfstream. His reason? Banks just ask too many silly questions. To him it was no different than you or I buying a bicycle. The $4M a year it costs him keep it gets lost with the rest of his bills. He's just on a different level than you or I. |
#34
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Sometimes assets are financed because of liability concerns. If someone
sues the corp and wins, the bank comes first. Plaintiff doesn't get much. Also, sometimes assets are financed to insure good title, insurance etc. And then there is leverage, you can simply own more if you borrow. Lots of reasons other than "can't afford to pay cash". |
#35
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I agree. You have to be pretty loaded to afford to finance a plane.
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#36
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"Robert M. Gary" wrote in message oups.com... I agree. You have to be pretty loaded to afford to finance a plane. Why do you say that? I just payed off my two cars and now have about $1000 extra cash a month and am finally starting to consider buying a plane. Why do I have to be loaded? |
#37
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On 31 Aug 2005 17:01:29 -0700, "Robert M. Gary" wrote:
Its amazing to me that some people finance their personal aircraft. The monthly costs associated with owning an aircraft are so massive I can't imaging servicing a loan on top of that. -Robert, M20F Seems like a no-brainer to me. I've got money in my Roth IRA that I could use; but that money has been earning me 14-15% per year (since 1999) tax-free. Why should I withdraw it when I can get a loan for an aircraft at less than 1/2 that rate? Same rationale for purchasing a auto a few years ago. Yes I could have paid cash; but I could also finance it for five years at zero percent interest. Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA) |
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