Quote:
Originally Posted by buzzy
I expect to be upside down when I sell it in 5 - 10 years. That's part of the cost of ownership. I know that some say to never finance a depreciating asset. But, the tax burden of drawing from an IRA changes the situation. Down the road, I'll take something out of the IRA to cover the shortfall, and only pay income taxes on that amount.
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All of these strategies seem to make sense to some degree. I guess it's critical, though, to keep in mind the fact that sooner or later, taxes will need to be paid on the IRA funds--by you or your heirs. I don't know, but depending on individual circumstances, it might be good to withdraw IRA dollars rather than pay loan interest. Possibly a combination of both would be ideal. JMO.