scheming concept for good deal

[scaredyclassic]

FROM SOME WEBSITE….

The same position is taken with personal, business and mortgage loans. Once again, it might be beneficial for a seller to increase his sales price and offer a low interest rate so he may profit from a lower tax liability. To prevent this from happening, the IRS requires that an applicable federal rate (AFR) be applied to all loans of six or more month’s duration. The AFR is published monthly, and determines the minimum amount of interest that should be assigned to different types of loans and investment vehicles.

If a person charges less than the AFR, the amount of interest that should have been charged is determined using the federal rate. This is the amount that the recipient will claim as income. If the interest paid qualifies as a deduction, such as a business loan or property mortgage, that is the amount the payer will show on his tax return. The difference between the actual interest and the imputed interest will be deducted from the principal of the note.

For example, if a person receives a one-year, zero interest loan of $20,000 US Dollars (USD), his loan will be adjusted for tax purposes to show both principal and interest. If the AFR for that type of loan is 10%, then the $20,000 USD repayment will be reclassified as a principal payment of $18,182 USD and an interest payment of $1818 USD. The loan would be considered paid in full, but the lender would be required to report the imputed interest as income. If the loan interest qualified as a tax deduction, the borrower would claim an $1818 USD deduction.

SO IS THE BOTTOM LINE

that the payment would be the same, and just some of it would be deemed interest and some principal?

[SK in CV]

[quote=scaredycat]
SO IS THE BOTTOM LINE

that the payment would be the same, and just some of it would be deemed interest and some principal?[/quote]
Good research. The answer is yes.

[SK in CV]

[quote=scaredycat]
SO IS THE BOTTOM LINE

that the payment would be the same, and just some of it would be deemed interest and some principal?[/quote]
Good research. The answer is yes.

[SK in CV]

[quote=scaredycat]
SO IS THE BOTTOM LINE

that the payment would be the same, and just some of it would be deemed interest and some principal?[/quote]
Good research. The answer is yes.

[SK in CV]

[quote=scaredycat]
SO IS THE BOTTOM LINE

that the payment would be the same, and just some of it would be deemed interest and some principal?[/quote]
Good research. The answer is yes.

[SK in CV]

[quote=scaredycat]
SO IS THE BOTTOM LINE

that the payment would be the same, and just some of it would be deemed interest and some principal?[/quote]
Good research. The answer is yes.

[scaredyclassic]

if that’s true, the scheme could kinda work. you pitch it to the unreasonable seller as “hey, i’ll pay your asking price, just let me make payments.” You don’t even have to clarify an interest rate, you just say, split it by 360, or whatever number you guys can agree on. you split it into 360 payments, you’re actually paying a small fraction of the asking price, once it’s divided into interest and principal, plus you’ll get to deduct the interest portion on your taxes. I was reading a study on reading and mathematical illiteracy and innumeracy …there are an astonishing percentage of low-functioning mental dullards out there… it’s not that farfetched that this could work. Under normal circs, an agent might explain interest to the seller. but the seller just wants the high price to go through, right, gets paid a bigger commission than off a smaller price, in fact, I could offer to pay the agent’s commission, make it 5% down, i’ll cover the commission.

heck, can you offer a side payment tot he realtor? if the agent represents both parties, can you also say, if you can figure out how to explain why this is a good deal to the seller, I’ll pay you 5 grand cash on the side? Anything illegal or unethical about that?

[scaredyclassic]

if that’s true, the scheme could kinda work. you pitch it to the unreasonable seller as “hey, i’ll pay your asking price, just let me make payments.” You don’t even have to clarify an interest rate, you just say, split it by 360, or whatever number you guys can agree on. you split it into 360 payments, you’re actually paying a small fraction of the asking price, once it’s divided into interest and principal, plus you’ll get to deduct the interest portion on your taxes. I was reading a study on reading and mathematical illiteracy and innumeracy …there are an astonishing percentage of low-functioning mental dullards out there… it’s not that farfetched that this could work. Under normal circs, an agent might explain interest to the seller. but the seller just wants the high price to go through, right, gets paid a bigger commission than off a smaller price, in fact, I could offer to pay the agent’s commission, make it 5% down, i’ll cover the commission.

heck, can you offer a side payment tot he realtor? if the agent represents both parties, can you also say, if you can figure out how to explain why this is a good deal to the seller, I’ll pay you 5 grand cash on the side? Anything illegal or unethical about that?

[scaredyclassic]

if that’s true, the scheme could kinda work. you pitch it to the unreasonable seller as “hey, i’ll pay your asking price, just let me make payments.” You don’t even have to clarify an interest rate, you just say, split it by 360, or whatever number you guys can agree on. you split it into 360 payments, you’re actually paying a small fraction of the asking price, once it’s divided into interest and principal, plus you’ll get to deduct the interest portion on your taxes. I was reading a study on reading and mathematical illiteracy and innumeracy …there are an astonishing percentage of low-functioning mental dullards out there… it’s not that farfetched that this could work. Under normal circs, an agent might explain interest to the seller. but the seller just wants the high price to go through, right, gets paid a bigger commission than off a smaller price, in fact, I could offer to pay the agent’s commission, make it 5% down, i’ll cover the commission.

heck, can you offer a side payment tot he realtor? if the agent represents both parties, can you also say, if you can figure out how to explain why this is a good deal to the seller, I’ll pay you 5 grand cash on the side? Anything illegal or unethical about that?

[scaredyclassic]

if that’s true, the scheme could kinda work. you pitch it to the unreasonable seller as “hey, i’ll pay your asking price, just let me make payments.” You don’t even have to clarify an interest rate, you just say, split it by 360, or whatever number you guys can agree on. you split it into 360 payments, you’re actually paying a small fraction of the asking price, once it’s divided into interest and principal, plus you’ll get to deduct the interest portion on your taxes. I was reading a study on reading and mathematical illiteracy and innumeracy …there are an astonishing percentage of low-functioning mental dullards out there… it’s not that farfetched that this could work. Under normal circs, an agent might explain interest to the seller. but the seller just wants the high price to go through, right, gets paid a bigger commission than off a smaller price, in fact, I could offer to pay the agent’s commission, make it 5% down, i’ll cover the commission.

heck, can you offer a side payment tot he realtor? if the agent represents both parties, can you also say, if you can figure out how to explain why this is a good deal to the seller, I’ll pay you 5 grand cash on the side? Anything illegal or unethical about that?

[scaredyclassic]

if that’s true, the scheme could kinda work. you pitch it to the unreasonable seller as “hey, i’ll pay your asking price, just let me make payments.” You don’t even have to clarify an interest rate, you just say, split it by 360, or whatever number you guys can agree on. you split it into 360 payments, you’re actually paying a small fraction of the asking price, once it’s divided into interest and principal, plus you’ll get to deduct the interest portion on your taxes. I was reading a study on reading and mathematical illiteracy and innumeracy …there are an astonishing percentage of low-functioning mental dullards out there… it’s not that farfetched that this could work. Under normal circs, an agent might explain interest to the seller. but the seller just wants the high price to go through, right, gets paid a bigger commission than off a smaller price, in fact, I could offer to pay the agent’s commission, make it 5% down, i’ll cover the commission.

heck, can you offer a side payment tot he realtor? if the agent represents both parties, can you also say, if you can figure out how to explain why this is a good deal to the seller, I’ll pay you 5 grand cash on the side? Anything illegal or unethical about that?

[scaredyclassic]

but what if you want to sell? You have to keep that mortgage in place, right, because the crux of the deal is that you have uniquely good financing. So you’d need to be able to make the mortgage assumable? How does that work in these situations? Seems complicated.

[scaredyclassic]

but what if you want to sell? You have to keep that mortgage in place, right, because the crux of the deal is that you have uniquely good financing. So you’d need to be able to make the mortgage assumable? How does that work in these situations? Seems complicated.

[scaredyclassic]

but what if you want to sell? You have to keep that mortgage in place, right, because the crux of the deal is that you have uniquely good financing. So you’d need to be able to make the mortgage assumable? How does that work in these situations? Seems complicated.

[scaredyclassic]

but what if you want to sell? You have to keep that mortgage in place, right, because the crux of the deal is that you have uniquely good financing. So you’d need to be able to make the mortgage assumable? How does that work in these situations? Seems complicated.

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