Truck purchase deductible on taxes?

Sounds like your mind is made up. Make sure to pick a really good cheap truck, so you can drain the rest of your retirement account on repairs.


Best of luck bud.

 

Ok, you know the risks. Make sure you have money set aside for maintenance and repairs. I used to recommend $50K but unfortunately that is not enough these days. Best of luck.

 

Sounds like a great idea. Pay yourself interest instead of a bank. Meanwhile you’re losing the compounding gains on the 401k. Average returns on 401k’s are currently about 8%. If I recall you’re usually allowed to borrow up to 50% and must repay within 5 years. Interest rate is usually about 4.5%. Even though you’re repaying yourself with interest. It’ll probably cost you twice as much more than a 10% loan, over 30 years. The real problem is if you don’t repay, the penalty, and tax due is the least of your problems. The actual cost is in the years from now when your ready to retire. Its astronomical. A $50k loan can end up costing you $500k. All depends on your age. If something happens and you need to bail out, you’re stuck with no way out. Can’t give the Truck back, can’t include losses in Bankruptcy. It’s a bad idea. You can burn through $50k Trucking in a very short time. Leave yourself an out. Don’t believe me. Believe an online calculator. Search loans from 401k. You’ll see for yourself. It’s unbelievable how risky it is, should it not work out. Not worth taking the chance, especially on a Truck.

 

I dunno if you've checked shop rates and what not lately but $175/hr adds up quickly. Parts aren't cheap these days either.

 

24 months is a different story. I’d probably take the chance myself, just to avoid giving the bank a single dime. 15% is too high, especially stretched out an extra year. Main thing is getting it paid back. Truck will be insured.