| Holy Tomolly!! [message #108096] |
Fri, 10 December 2010 04:32  |
tgeiger
Messages: 518
Registered: February 2006
Location: kansas city
Karma: -1
|
Senior Member |
|
|
Just wanted to share a short story on new coach purchase.
I have a co-worker who is aproaching retirement at the end of the year. He plans on buying a new Class "A" after he retires.
Don't know the specifics on the make or model, but it is nice.
I believe it's around 40 ft, gas powered, couple slides...very nice looking. Anyhow he was struggling with the desire to pay for it outright vs making payments on it. His tax guy is telling him absolutly to set up a loan and make payments because he would be nailed on taxes this coming year because of showing to much income. So in making payments he says he'll be paying 1100.00/month for 20 years!! Holy crap!...sure glad I have my GMC, (paid for)..well making installments on upgrades, but no where near that kind of money. And I can pick and choose when I spend the money. Can't imagine having to make a house payment each month on a Rv for the next 20 years!! Now I know you wouldn't keep the coach for 20 years but when do you not be upsidedown in it??
Anyhow I know this is a expensive toy we have at times, but this sure makes me feel better when I jump in the old girl and she works just fine on my little fishing excursion!!
Tom Geiger
76 Eleganza II
KCMO
|
|
|
|
| Re: [GMCnet] Holy Tomolly!! [message #108100 is a reply to message #108096] |
Fri, 10 December 2010 06:58  |
Ken Henderson
Messages: 8726
Registered: March 2004
Location: Americus, GA
Karma: 9
|
Senior Member |
|
|
Speaking from experience, that's an unbelievably absurd financial decision.
In 5 years the coach will be worth only 1/2 (or less) of its new price.
Yet the loan balance will be 3/4 of the starting balance -- all in very
rough terms, of course.
We bought a new '97 Safari 40' pusher for $184,000. Sold it in 2004 for
$85,000 -- and was VERY lucky to find a buyer at that price. So it cost us
$11,000 per year + insurance and operating expenses for about 40,000 miles
and only about 4 years of really active use. We enjoyed it so I guess it
was worth it, but it was a POOR investment.
I always say that my total 12 year cost of the GMC approximates the first
mile depreciation on the Safari. :-) or :-( depending on how you look at
it.
Ken H.
On Fri, Dec 10, 2010 at 5:32 AM, tom geiger <tgeiger@burnsmcd.com> wrote:
>
>
> Just wanted to share a short story on new coach purchase.
> I have a co-worker who is aproaching retirement at the end of the year. He
> plans on buying a new Class "A" after he retires.
> Don't know the specifics on the make or model, but it is nice.
> I believe it's around 40 ft, gas powered, couple slides...very nice
> looking. Anyhow he was struggling with the desire to pay for it outright vs
> making payments on it. His tax guy is telling him absolutly to set up a
> loan and make payments because he would be nailed on taxes this coming year
> because of showing to much income. So in making payments he says he'll be
> paying 1100.00/month for 20 years!! ...
_______________________________________________
GMCnet mailing list
List Information and Subscription Options:
http://temp.gmcnet.org/cgi-bin/mailman/listinfo/gmclist
Ken Henderson
Americus, GA
www.gmcwipersetc.com
Large Wiring Diagrams
76 X-Birchaven
76 X-Palm Beach
|
|
|
|
| Re: Holy Tomolly!! [message #108105 is a reply to message #108096] |
Fri, 10 December 2010 08:59 |
Dennis S
Messages: 3046
Registered: November 2005
Karma: 2
|
Senior Member |
|
|
Before your co-worker buys an rv he needs a new tax guy! Or he needs to better understand what his advisor is saying. Hopefully he is not planning a large IRA withdrawal in one year to pay for a new coach.
Sad, but sometimes folks just need to get burned to learn.
Dennis
quote title=tgeiger wrote on Fri, 10 December 2010 04:32]Just wanted to share a short story on new coach purchase.
I have a co-worker who is aproaching retirement at the end of the year. He plans on buying a new Class "A" after he retires.
Don't know the specifics on the make or model, but it is nice.
I believe it's around 40 ft, gas powered, couple slides...very nice looking. Anyhow he was struggling with the desire to pay for it outright vs making payments on it. His tax guy is telling him absolutly to set up a loan and make payments because he would be nailed on taxes this coming year because of showing to much income. So in making payments he says he'll be paying 1100.00/month for 20 years!! Holy crap!...sure glad I have my GMC, (paid for)..well making installments on upgrades, but no where near that kind of money. And I can pick and choose when I spend the money. Can't imagine having to make a house payment each month on a Rv for the next 20 years!! Now I know you wouldn't keep the coach for 20 years but when do you not be upsidedown in it??
Anyhow I know this is a expensive toy we have at times, but this sure makes me feel better when I jump in the old girl and she works just fine on my little fishing excursion!![/quote]
Dennis S
73 Painted Desert 230
Memphis TN Metro
|
|
|
|
| Re: Holy Tomolly!! [message #108155 is a reply to message #108105] |
Fri, 10 December 2010 22:41 |
Jiffyjet2
Messages: 86
Registered: November 2008
Karma: 0
|
Member |
|
|
Don't forget he'll get a fairly significant tax deduction for buying the RV on time, depending on his tax bracket. However, I'll take my GMC anyday. Driving a 40 foot house with a toad hanging on the back ain't my idea of a fun day. I don't plan my purchases around tax laws anyway.
Jess Marker
Tacoma, Washington
'74 Canyonlands, "the great pumpkin"
Jess
'74 Canyonlands
"the Great Pumpkin"
Tacoma, Washington
|
|
|
|
|
|
|
|
|
|
| Re: [GMCnet] Holy Tomolly!! [message #108189 is a reply to message #108184] |
Sat, 11 December 2010 10:00 |
Ken Henderson
Messages: 8726
Registered: March 2004
Location: Americus, GA
Karma: 9
|
Senior Member |
|
|
At one time I had a photo of the X-Birch behind the 40' Safari with a tow
bar propped up between them in the parking lot at the Tampa Safari warranty
repair facility. Caused quite a stir among the mechanics there when they
came to work to find me waiting for repairs. Can't find it now.
Ken H.
mike miller wrote on Sat, 11 December 2010 09:03
> ...> If I go "full-time" do you think a 23 foot Birch would make a good
> towd? :lol:
>
>
_______________________________________________
GMCnet mailing list
List Information and Subscription Options:
http://temp.gmcnet.org/cgi-bin/mailman/listinfo/gmclist
Ken Henderson
Americus, GA
www.gmcwipersetc.com
Large Wiring Diagrams
76 X-Birchaven
76 X-Palm Beach
|
|
|
|
|
|
|
|
|
|
|
|
| Re: Holy Tomolly!! [message #108291 is a reply to message #108105] |
Sun, 12 December 2010 08:23 |
fred v
Messages: 999
Registered: April 2006
Location: pensacola, fl.
Karma: 0
|
Senior Member |
|
|
| Dennis S wrote on Fri, 10 December 2010 08:59 |
Before your co-worker buys an rv he needs a new tax guy! Or he needs to better understand what his advisor is saying. Hopefully he is not planning a large IRA withdrawal in one year to pay for a new coach.
Sad, but sometimes folks just need to get burned to learn.
Dennis
|
if he buys it outright the money is all gone. if he makes payments those are taken from the interest/dividends he earns and the principal is still in his account. i'm going for what the tax guy said.
Fred V
'77 Royale RB 455
P'cola, Fl
|
|
|
|
| Re: [GMCnet] Holy Tomolly!! [message #108295 is a reply to message #108291] |
Sun, 12 December 2010 08:33 |
k2gkk
Messages: 4452
Registered: November 2009
Karma: -8
|
Senior Member |
|
|
It all depends on the source of the "cash"
that he would use to purchase the coach.
A lump sum withdrawal from IRA/401k account
would bring a very large tax bill. Setting
up to use a Required Minimum Distribution
(RMD) to make the payments MIGHT make sense.
I agree that further research into all the
alternatives is mandatory. On a 20-year
mortgage, he is likely to spend close to
double the "cash" price and end up with
something that is worth only maybe 30% of
the total "investment."
These toys are NOT investments, they are
expenditures. Investments are made with an
aim to INCREASE one's wealth, not DECREASE it.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ D C "Mac" Macdonald ~ ~~
~ ~ Amateur Radio - K2GKK ~ ~
~ ~ USAF and FAA, Retired ~ ~
~ ~ ~ Oklahoma City, OK ~ ~ ~
~~ ~ ~ "The Money Pit" ~ ~ ~~
~ ~ ~ ex-Palm Beach, 76 ~ ~ ~
~ www.gmcmhphotos.com/okclb ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
----------------------------------------
> To: gmclist@temp.gmcnet.org
> From: fredntoni@cox.net
> Date: Sun, 12 Dec 2010 08:23:12 -0600
> Subject: Re: [GMCnet] Holy Tomolly!!
>
>
>
> Dennis S wrote on Fri, 10 December 2010 08:59
> > Before your co-worker buys an rv he needs a new tax guy! Or he needs to better understand what his advisor is saying. Hopefully he is not planning a large IRA withdrawal in one year to pay for a new coach.
> >
> > Sad, but sometimes folks just need to get burned to learn.
> >
> > Dennis
>
>
> if he buys it outright the money is all gone. if he makes payments those are taken from the interest/dividends he earns and the principal is still in his account. i'm going for what the tax guy said.
>
> --
> Fred V
> '77 Royale RB 455
> P'cola, Fl
_______________________________________________
GMCnet mailing list
List Information and Subscription Options:
http://temp.gmcnet.org/cgi-bin/mailman/listinfo/gmclist
|
|
|
|
| Re: Holy Tomolly!! [message #108297 is a reply to message #108096] |
Sun, 12 December 2010 08:48 |
Dennis S
Messages: 3046
Registered: November 2005
Karma: 2
|
Senior Member |
|
|
Fred
Thie advice I was questioning was
quote His tax guy is telling him absolutly to set up a loan and make payments because he would be nailed on taxes this coming year because of showing to much income
/quote]
Spending and income are not the same -- confusing advice -- perhaps not correctly understood.
Dennis
Dennis S
73 Painted Desert 230
Memphis TN Metro
|
|
|
|
| Re: Holy Tomolly!! [message #108367 is a reply to message #108096] |
Sun, 12 December 2010 16:49 |
tgeiger
Messages: 518
Registered: February 2006
Location: kansas city
Karma: -1
|
Senior Member |
|
|
Hope I can clear up things. His retirement package comes in 2 parts for him. He can take his 401k after the turn of the year and he will have a esop account that will come to him the following year. If I understood him correctly, he would purchase his RV with some of the 401k money...which would expose that portion of his account as income. I'm not tax savy at all but I believe that is what he was saying.
Tom Geiger
76 Eleganza II
KCMO
|
|
|
|
|
|
|
|
| Re: [GMCnet] Holy Tomolly!! [message #108398 is a reply to message #108396] |
Sun, 12 December 2010 22:16 |
k2gkk
Messages: 4452
Registered: November 2009
Karma: -8
|
Senior Member |
|
|
YOu don't even have to "full-time" to claim
2nd home interest deduction. I claimed it
for my boat until my house was paid off and
itemizing was no longer the way to go.
Yes, my boat has sleeping, cooking, and
bathing facilities. Actually has TWO heads
(bathrooms) with showers.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ D C "Mac" Macdonald ~ ~~
~ ~ Amateur Radio - K2GKK ~ ~
~ ~ USAF and FAA, Retired ~ ~
~ ~ ~ Oklahoma City, OK ~ ~ ~
~~ ~ ~ "The Money Pit" ~ ~ ~~
~ ~ ~ ex-Palm Beach, 76 ~ ~ ~
~ www.gmcmhphotos.com/okclb ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
----------------------------------------
> From: hend4800@bellsouth.net
> Date: Sun, 12 Dec 2010 20:19:17 -0500
> To: gmclist@temp.gmcnet.org
> Subject: Re: [GMCnet] Holy Tomolly!!
>
> It's even better than that: the loan interest can be deducted
> if the motorhome is classified as a "second home" -- so far.
>
> Ken H.
>
> On Sun, Dec 12, 2010 at 6:12 PM, Bruce Hislop wrote:
>
> >
> >
> > Are you meaning to tell me that you guys can deduct the interest on your RV
> > if you full-time???
> > ...
_______________________________________________
GMCnet mailing list
List Information and Subscription Options:
http://temp.gmcnet.org/cgi-bin/mailman/listinfo/gmclist
|
|
|
|
| Re: Holy Tomolly!! [message #108410 is a reply to message #108096] |
Mon, 13 December 2010 05:48 |
tgeiger
Messages: 518
Registered: February 2006
Location: kansas city
Karma: -1
|
Senior Member |
|
|
Yep, as far as a second home status, that's how I set it up on my GMC. My tax guy had it as a second home, (qualifier, a toilet) according to him. So I got to write off the interest on the loan I took out. Brings a question up. Some day I might sell this...would I be able to take a loss on this "second home" with the investments I put into to upgrade it, vs the sale price?
Tom Geiger
76 Eleganza II
KCMO
[Updated on: Mon, 13 December 2010 05:48] Report message to a moderator |
|
|
|
GMCforum
Search
Help
Register
Login
Home
