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After you have covered your obligations in life, do and get what the hell you want. I will always remember talking to a friend who left too soon telling me he always wanted to own a vette. I do and always have wanted to. This car is for me, the 9 year old kid with a crewcut out with the family for ice cream at Hummarock Beach in Marshfield, Mass forever ago.."Hey Dad, what kind of car is that?(silver 63 coupe)...Mark, that's a Corvette"...amen. 2016 Shark Grey C7...Hell Yea!
Yup, the mortgage is paid (BTW all you cash only guys aren't buying your house for case are you?), there is food on the table, and my retirement fund is in good shape. So why would anyone care what I spend the rest of my money on? I'm not asking anyone else to pay for it
I look at it in a rather simple way. I want to have fun. Fun cost money. Corvette is lots of fun but depreciates maybe $5k a year. Do I get $5K a year out of it in fun? I think so.
Could not have said it any better. You only live once.
I always thought this forum needed a "Babes" section. Would create a lot of interest for vender solicitations.:y esnod::y esnod::y esnod::y esnod::y esnod::y esnod:
To minimize depreciation (defined as purchase price less selling price)
1) Choosing a C7 is a good start, since the C7 depreciates LESS than the vast majority of mass produced cars.
2) Don't buy a new Corvette loaded with a ton of options
3) Negotiate a real good deal on the car when you purchase it
4) Keep the car maintained properly and in excellent condition
5) Don't be a desperate seller when the time comes.
Finance the Rental Property and the Interest is deductible finance the car and it is not. Check with your Tax professional.
Yep. I agree. Kind of my theory. Also, if you are trying to financially justify the purchase of the car, don't drive yourself crazy. On a car.....pay cash for what you can afford and don't finance any amount on a car purchase. If you need to step back and buy a low mileage one or two year old car, so be it. And to the poster knocking cash buyers because they wouldn't do that with their house..........yes, I paid for my last house with cash as well. I didn't need or want a 10000 Sq ft house.
Holy crap, been out of town for a few days and 4 pages of responses that is GREAT!
OP here, I've read through all the responses TY, much appreciated!
I have to say, I did NOT do a good job of asking my question. I got responses for exactly what I asked for "Justifying a depreciating asset"...LOL! I need to brush up on the context of my English. Many apologies I did not mean to get people spun up on the topic of "depreciating assets"
In the simplest terms, Im looking for a financial instrument to pay for my "Toy".
Yes, maybe I'm over analyzing this, but thats just me.
I have the means to purchase a C7, OR I can purchase a nice duplex rental in my area and use the rental income to pay for the Toy. At least that's what I'm thinking.
Has anyone else considered this route?
Yes, I get the risks involved with rental properties, particularly with people, maintenance and keeping the property occupied.
I have the means to purchase a C7, OR I can purchase a nice duplex rental in my area and use the rental income to pay for the Toy. At least that's what I'm thinking.
Has anyone else considered this route?
We did consider it and thought screw it, you can't take it with you and the kids can make their own.
My wife has wanted to be a slumlord for a while, we may still do it. Residual income is nice but dealing with renters and contractors (can't do everything) may be a better choice for me in the future.
I still work, plan to work until I die (wtf is there to do? golf and talk about bowel movements?), and don't see the point in giving my "wealth" to the taxman, medical industry, or a mortician.
2004 - Came across a B2K Quasar Blue Metalliccar with both Aerobody and Dymag wheels, 13,500 on the clock. Went to Denver to check it out and take it for a spin. Made an offer and they were motivated to get the 2004 Commemorative Edition Z06 which was what they called "a Corvette we could drive". They accepted the offer.
Shipped it back home and drove it sparingly to Corvette club events, car shows at Michigan International Speedway and of course the Woodward Dream Cruise. The miles of smiles were unbeatable. Enjoyed the car and all the questions (Is that the new Corvette? Ahhh, no, it's 14 years old.....).
Two years later, it went up for sale. It went for $2,000 more than what was invested (including the shipping from Colorado).
Yes, they can make a little bit of money. You just have to know every detail of the vehicle being considered, know how to take care of them and of course where the market is at any given moment.
Here's the way I see it. Got my C7 a few months ago. Bought it in cash. OK now, I can own it myself and not be able to take any advantage depreciation-wise or I can have the business buy it and depreciate it over time (some smaller amount my CPA said). To me getting a tax break on depreciation is better than not getting a tax break on depreciation. As for re-sale and claiming profit well #1 I'm not selling. This is my ride into the sunset. And #2 if I had to sell it would probably not be worth that much. IOW it's not gonna appreciate in value and it will probably not incur any profit that I'd have to worry about. As I see there's no reason not to depreciate it.
Finance the Rental Property and the Interest is deductible finance the car and it is not. Check with your Tax professional.
While true, you need to look at the final after tax cost. Just because it's deductible doesn't mean it's cheaper. A regular car loan at .9% will be cheaper for most people than a mortgage loan at 4%, even after deducting the interest. Especially if you're financing the car over 4 years and the property over 15 - 30 years.
Here's the way I see it. Got my C7 a few months ago. Bought it in cash. OK now, I can own it myself and not be able to take any advantage depreciation-wise or I can have the business buy it and depreciate it over time (some smaller amount my CPA said). To me getting a tax break on depreciation is better than not getting a tax break on depreciation. As for re-sale and claiming profit well #1 I'm not selling. This is my ride into the sunset. And #2 if I had to sell it would probably not be worth that much. IOW it's not gonna appreciate in value and it will probably not incur any profit that I'd have to worry about. As I see there's no reason not to depreciate it.
Plus the tax depreciation tables are more aggressive than the actual depreciation, especially a lower mileage vette-so now you have to factor in depreciation recapture if you sell it.
Plus the tax depreciation tables are more aggressive than the actual depreciation, especially a lower mileage vette-so now you have to factor in depreciation recapture if you sell it.
Well 1) I don't plan on selling it - EVER. And 2) my CPA says that he highly doubts that if I were to sell it I would overcome the amount of depreciation claimed and need to recapture any depreciation from profiting. In fact he said that the tax depreciation is limited in such a way as I'm not even close to the amount of real depreciation on the vehicle. If I were purchasing say cheap trucks or running a taxi cab company then I might be concerned but with the purchase price of my car I'm not even close to being able to depreciate it.
11-24-2015, 04:47 PM
