STUDENT LOANS

[IMBVSUR?]

I too have known people that appear to have just got tired of paying their bills or struggling because of the debt they incurred for toys, so you guessed it, bankruptcy. I find it hard to understand how people can complain about someone ( like Trump ) they think doesn't pay his taxes, yet they don't care if others don't pay their bills I see ads daily where I live for people to claim bankruptcy and tax relief if you owe the IRS. These same people who complain about people like Trump not paying his so called fair share of taxes, take either the standard deduction, or many other deductions under itemized, to "NOT" pay taxes Everyone takes any deduction they can. Trump is only using the laws the IRS has setup ( mainly from rich democrats and republicans to benefit themselves ) Any time I hear about so called FAIR SHARE, I ask if they take deductions. That usually shuts them up. If it doesn't, I ask if they believe in equality. They always say yes because they would choke and die if they could not. When they do, I ask how they can treat, or expect anyone to pay more taxes than anyone else Fair is fair. You make 1k or 2M, you pay 15%. That's fair. Then all the BS starts about bla bla bla. You cannot win against the insanity. Logic is replaced by feelings. That is the feelings of the liberal trying to prove, or force their point of view on you.

 

[oleblu72]

When i was paying off my Suzuki trail bike keep in mind this was in the mid 60's when we had the British invasion I got the idea that I wanted to buy a guitar so Mom hauled my butt down to Strous's music center and I picked out a cool looking red & white Fender guitar we were finalizing the deal with the salesman then I layed a big ole guilt trip on myself because I was still paying for the Suzuki because if anything would of happened I feared I wouldn't be able to pay off Mom & Dad off so I got cold feet so I nixed the deal it broke my heart to do it and I think I broke the salesman's heart too.

Mark

 

[IMBVSUR?]

When i was paying off my Suzuki trail bike keep in mind this was in the mid 60's when we had the British invasion I got the idea that I wanted to buy a guitar so Mom hauled my but down to Strous's music center and I picked out a cool looking red & white Fender guitar we were finalizing the deal with the salesman then I layed a big ole guilt trip on myself because I was still paying for the Suzuki because if anything would of happened I feared I wouldn't be able to pay off Mom & Dad off so I got cold feet so I nixed the deal it broke my heart to do it and I think I broke the salesman's heart too.

Mark

 

[Junky]

Just think what that guitar would be worth today.... You would be on nine!!

 

[Iowa 409 Guy]

They talk of Trump paying taxes. They speak only of end of fiscal year and not of what he paid in on quarterly estimates. Big, big money, and if you fudge you are penalized.

 

[Phil Reed]

Just think what that guitar would be worth today.... You would be on nine!!

My best friend at the age of 19 decided to start a rock and roll band. He was a master drummer and me.....not a musician!!!! We put 2 deposits on S G Custom Gibson guitars. For those not into guitars, they were white with gold accents and strings. After like 3 months when they hadn't come in.....my cancelled and bought 66 Triumph Bonneville motorcycles!!!!!!
Those guitars are worth hundred of thousands of dollars now!!!!!!!

 

[Junky]

My best friend at the age of 19 decided to start a rock and roll band. He was a master drummer and me.....not a musician!!!! We put 2 deposits on S G Custom Gibson guitars. For those not into guitars, they were white with gold accents and strings. After like 3 months when they hadn't come in.....my cancelled and bought 66 Triumph Bonneville motorcycles!!!!!!
Those guitars are worth hundred of thousands of dollars now!!!!!!!

Seems like you have been making poor decisions you whole life. Do you own a mirror, and do you ever look into it and ask yourself why???

 

[Iowa 409 Guy]

Seems like you have been making poor decisions you whole life. Do you own a mirror, and do you ever look into it and ask yourself why???

And now he buys a collectable double nut corvette....#1 of 1

 

[Tom Kochtanek]

Many people who have no interest in real estate other than their own house do not fully understand the "depreciation potential" an acquired asset presents. Say you make $50K per year and own one rental home in addition to your personal residence. Assuming you itemize deductions, you have some in the interest paid, taxes paid, etc. with respect to your personal home. But with the rental property you get all that PLUS depreciation on that property (even though it is going up in value and you're reducing debt every month). Straight line you get one twenty-seventh (1/27.5 actually) of the purchase price that comes off your AGI (adjusted gross income). Let's say that rental cost you $275,000 (just as an example, makes the math easier) then in addition to interest/taxes/insurance and Repairs, you get that 1/25th depreciation, or about $10,000 in "paper depreciation) To the IRS that makes you look as if you made $40K, not $50K. Do that a few times and it's pretty easy to get your AGI down to ZERO and Voila! you pay no federal income tax. Of course you have to manage and maintain that property and all that brings with it .

Trump being in the real estate business I'm certain his accountants incorporated these types of factors in reporting his activities. Commercial Real Estate, while more complicated and with more risk, has even more depreciable categories that help set aside tax payments to State and Federal agencies. The catch is when you sell, you have such a low basis due to depreciation that you end up paying all those taxes on the reduced balance. I once depreciated a rental to zero and was surprised at how I got stabbed paying huge "deferred taxes".

Sorry if I bored you with this post, but those of you who own and operate your own business are probably already aware of the potential associated with deferred income tax payments due to depreciation of assets (whether it be a home or equipment, etc.).

Cheers! TomK

 

[IMBVSUR?]

Many people who have no interest in real estate other than their own house do not fully understand the "depreciation potential" an acquired asset presents. Say you make $50K per year and own one rental home in addition to your personal residence. Assuming you itemize deductions, you have some in the interest paid, taxes paid, etc. with respect to your personal home. But with the rental property you get all that PLUS depreciation on that property (even though it is going up in value and you're reducing debt every month). Straight line you get one twenty-seventh (1/27.5 actually) of the purchase price that comes off your AGI (adjusted gross income). Let's say that rental cost you $275,000 (just as an example, makes the math easier) then in addition to interest/taxes/insurance and Repairs, you get that 1/25th depreciation, or about $10,000 in "paper depreciation) To the IRS that makes you look as if you made $40K, not $50K. Do that a few times and it's pretty easy to get your AGI down to ZERO and Voila! you pay no federal income tax. Of course you have to manage and maintain that property and all that brings with it .

Trump being in the real estate business I'm certain his accountants incorporated these types of factors in reporting his activities. Commercial Real Estate, while more complicated and with more risk, has even more depreciable categories that help set aside tax payments to State and Federal agencies. The catch is when you sell, you have such a low basis due to depreciation that you end up paying all those taxes on the reduced balance. I once depreciated a rental to zero and was surprised at how I got stabbed paying huge "deferred taxes".

Sorry if I bored you with this post, but those of you who own and operate your own business are probably already aware of the potential associated with deferred income tax payments due to depreciation of assets (whether it be a home or equipment, etc.).

Cheers! TomK

Not boring at all. I have tried to explain some of that to the guys at work. Not depreciation on RE, but how to lower their AGI at work. I shelter about 20K a year and they just cannot understand why.

 

[wristpin]

They talk of Trump paying taxes. They speak only of end of fiscal year and not of what he paid in on quarterly estimates. Big, big money, and if you fudge you are penalized.

Did Clintons or Bidons or Pelosi pay taxes on their illigally corrupt money? Whats the tax rate and payments of Hollywood elite and liberal billionaires? Everyone should pay their fair share but i get tired of those Elite POS running their cokk washers while being as bad or worse

 

[IMBVSUR?]

Everyone uses the tax code to pay as little taxes as they can. EVERYONE. I just tell the liberals that when they start yakking. Then I start with the how much did you deduct this year?

 

[409gang]

Not boring at all. I have tried to explain some of that to the guys at work. Not depreciation on RE, but how to lower their AGI at work. I shelter about 20K a year and they just cannot understand why.

You can't fix stupid!

 

[IMBVSUR?]

You can't fix stupid!

No sir you cannot.

 

[Greg Reimer]

When my currently 33 year old son got out of high school around 2005, he exercised a wise option to go to a community college for his first two years of higher education, so he enrolled at Santa Barbara City College, lived at Isla Vista,(not a good choice),then for semester 2 of year 1, he moved back home and went to the local community college,(Citrus), where he graduated, did pretty well, then applied at a few UC schools. He got into Irvine, moved down there and graduated with his bachelor's degree. He majored in history, graduated well, then asked if he could stay and get his Master's in Education, since there were no jobs open in education at that time, so we did that. A job as a PE teacher and History teacher for two periods a day came along, he got it, (the principal and him hit it off, they both played golf, ) and it worked out really well for him. He took a job at a middle school in Orange County as a PE teacher, the Master's moved him over a column or so in pay, and he's the PE department head. There's two jobs that nobody in their right mind would have, one being middle school band director, the other one being PE teacher, both being because of the total insanity associated with both positions, but he likes the kids and they like him.The school is ecstatic about him being there, because that's one difficult to fill job and he has really made it work. He's successfully married and well along on life's road. His sister went to Citrus, fell madly in love with school, as she put it, nailed down some grades, and applied at all the UC schools. She got accepted first at UCLA, then Berkeley, and a few others, so she chose Berkeley. I wasn't too thrilled about that, but the English program up there was exemplary,she got her BA, her teaching credential, then finished her Master's while working as a high school English teacher in Alameda, now she will be looking for a higher paid position up in the bay area sometime in the near future. Meanwhile, my wife went online and got a second Bachelor's degree at Utah State while working as a speech/language specialist here locally, then enrolled in a Master's program at University of Wisconsin,Eau Claire. She graduated with that a few years ago, at 61. She's done with all this now, and all three of them did it without student loans. We all felt that was a liberally dominated racket of some kind.My wife and I both worked and we paid for all this as we went along. I saw, at age 28, what they do to you when you get a 30 year home loan, so we put extra principle to about $600 a month down on the house. l owned it free and clear by the time I was 40 and they were still in high school. Nobody here has had any student loans, we have no indebtedness, it can be done if you come up with a doable strategy, so plan your work and work your plan. I enjoy the radio program by Dave Ramsey about living debt free, and while I was pretty well done with all this by the time his show came along, and I enjoy finding out that I wasn't full of something the whole time. My life's motto has always been,"Success is the best revenge.".It can be done!!

 

[409gang]

You can make it by just living within your means, my wife quit working when we had our first child (1982) and became a stay at home mom. I became debt free in 1995 at age 44 and both my children graduated with a 4 year (BA) degree. My daughter had a full ride academic scholarship but I paid for my sons education out of pocket. I did though give my son 2 choices for college, the first one was he could go wherever he wanted to go and he could pay for it himself or he could go to a local state school and commute from home and his mother and I would pay for it, but only for passing grades. I gave him these two options as I was not going to pay for him to party, well you can only guess what option he chose. After he graduated college I paid out of pocket for his flying lessons to get a pilots license with a rotary wing rating (helicopter pilot) and everyone left here debt free. I am telling you this because it is possible to make it and get ahead by just living within your means, I made it without a college education and on an electricians wage. Most people today are a$$hole deep in debt and will never see the light at the end of the tunnel, to many toys to early on. People ask me why I am building a race car now and not when I was younger, well I had other responsibilities then but now its my time and Im loving every minute of it.

 

[Greg Reimer]

Old Testament history tells of how the nation of Israel was allowed to transact business and co operate with other nations, but God forbade them from borrowing from other people and becoming entangled with debt. Scripture tells us that the borrower becomes enslaved to the lender. It was true back then, and especially now. It's like allowing someone to do you a favor only to have them act like they have some right of ownership later. Some relatives are pretty good about doing that. If you get involved with some persons even a little bit, they somehow assume that gives them some kind of latitude for special privilege later on.If you accept anything from outside sources, you get owned by them. Tell me, do you want to be owned by government? Look at this coved 19 scandal if you want to see how far government can over reach with its control and authority. I believe we have a real problem and a very real illness, but look how its being handled!
P.S. Have fun with your race car!! I sure have had with mine!!

 

[Tom Kochtanek]

Steve hits the nail on the head with his comments about living within your means. I've made a few mistakes early on and survived (somehow!). My first was the first house. Too small for a family. The second was the current house, too much maintenance (but big enough!). I had just got tenured at Mizzou (1984 and had a big raise of $3K to run my annual income up to a whopping $22K. That's when I bought the current house, took over half my income just for house payments . That lead to my 3rd mistake, not setting enough $$$ aside for two boys' college education. So when they graduated from high school and got accepted to the University of Missouri, I felt I was on the hook to make good on their education. It always seemed that there was more month than there was money, those were challenging times. But were were prudent, made sacrifices, and somehow perservered .

 

[wristpin]

I worked hard and got married and divorced and married and divorced and married and divorced. My pecker made some unwise financial choices.

 

[IMBVSUR?]

I had to learn the hard way. Got married after the army, got in debt like no tomorrow. Paid, and Paid. Finally got a house, but not where or what we wanted because of the debt. Then I got hurt on the job. That is where the education started. Back and forth, then started to learn, but paid for everything and kept the house. Was doing ok, then the wife became injured. Thought we were going to lose everything. Sold all the toys, sold most the stocks, paid the house almost off and cleared all debt. WOW. I then bought a house for almost twice of what I had. I learned I could live better off of almost half my prior income than I could when in debt. Now I cannot say I am debt free right now, but close and that is how I keep it. And that will be paid for early.