Community Discussions
Explore the latest discussions and community conversations related to this domain.
How do taxes work with loans and assets?
Main Post:
If I get a loan against an asset such as a house or stocks, can I get out tax free? For example the people who give me the loan agree to take an asset such as a home or stocks as payment for the loan? I want a legal way out
Top Comment: What?
Are Directors loan repayments tax deductible?
Main Post:
Hi all, this very likely has an obvious answer but I cannot seem to find a clear cut one online. Are Directors loan repayments (return of money back to the Director from the company) tax deductible? There would be no interest owed to the Director. As far as I can see, it would be an expense to the company of sorts, but it doesn't appear to be framed that way on the pieces I've read about it. Does this change if the loan is from an entity that is not a Director? If the Director loans the company 20k, can the company return that payment and reduce its tax burden? Can the loan bridge more than one year? (Make 10k in Y1, Pay back 10k in Y1, no profit, and repeat the following year?) Many thanks in advance!
Top Comment:
With no interest, you can send money from your company to yourself after corp tax. So no, it’s not tax deductible but you don’t pay personal tax getting that cash back. It’s not an expense.
If someone is helping me pay off my student loans, is that taxed as a gift?
Main Post:
I graduated from college last year with some student loan debt. I've been paying them back at an accelerated schedule, $600 each month. About a week ago, my parents finished paying off some debt they had. With their newfound disposable income, they have offered me an additional $500/month to put toward my student loans in order to finish paying them off sooner.
My knowledge of tax code is limited, but I was wondering: Is that help paying my student loans taxed as a gift?
Top Comment: Normal people don't pay gift tax. Someone noted the $18k exemption, which stacks. $36k if 2 parents gifting it to you. If you're married, then they can give you and your spouse $72k before Filing a gift tax return. Anything over that exemption just gets reported, and subtracted from the gifter's lifetime exemption. $13 million. There are some politicians arguing for lowering that, but the lowest I've heard is $3 million. There are also special exemptions for certain things like farms. I repeat: NORMAL PEOPLE DON'T PAY GIFT TAX.
Is it possible to never pay tax on interest bearing cryptos by using loan?
Main Post:
There's this crypto Hex, which gives 15% APY if you exchange your hex for their bonds which mature in 15 years. How it's setup you never gain control of the bonds till the 15 year mark. If you claim early you pay a giant penalty, which is used to pay out the interest for other bond holders. If at the end of the 15 year mark, after two weeks, you never claim your shares get redistributed to other bond holders.
You're able to take loans out against your position as well in US dollar derivatives. If I took out one of those loans, and at maturity never claim my interest payouts do I avoid the taxes on the gains in the US? In other words is it possible to create a derivative that uses mathematics to work around tax law?
Top Comment:
I'm really confused.
If I took out one of those loans, and at maturity never claim my interest payouts do I avoid the taxes on the gains in the US?
So... buy bonds with crypto, take a loan against your bond position, and then forfeit the interest on your bonds?
That sounds like a complicated way to accomplish nothing (or to lose money because you'll probably pay interest on the loan).
Is it worth trying to pay off my student loan or do I just consider it a tax
Main Post:
I graduated uni June 2024 and recently looked at my student loan and it's now around £46,000. I'm a little confused as some say it's better to consider it as a tax and some say if you think you might be a higher earner it's better to try and pay it off to avoid the interest.
For context, I have just got a graduate job at a good London firm and it's paying a bit under £35,000 but people say that salary progression is good once you've finished the grad scheme and that exit opportunities are also great. And from my research I'll hopefully be on around £50,000 in 2-3 years if I stay with this firm with another fairly large increase in another 3 years.
However this isn't a lot when I compare the salary to my friends who are on £50,000 to £60,000 straight out of uni. I don't know if their salaries are skewing my idea of a good salary. I really don't know where to place myself on that scale. I'm not sure whether I will end up a high earner who should pay off the loan, or just consider it a tax. I'm lucky enough that I can stay at home and not pay for rent so I don't have that to worry about. Just travel to work, creating a good amount of savings, adding to a pension, then hopefully eventually a house deposit.
I'm really trying to get up to speed with all the finance terms so that I can set my future up well, but I'm a bit stuck on this. Do I prioritise saving for a house or paying my loan off? or a good balance of both?? I'm confused and would like to figure out how I'm going to go about it before I start my grad job in the new year.
Top Comment:
£35k is a great salary for first year graduate job considering how sh*t things are out there.
How to structure a zero interest loan to a charity? : r/tax
Main Post: How to structure a zero interest loan to a charity? : r/tax
401k loan default
Main Post:
Hey guys,
If I default on the loan from my 401k, I get a 1099-R with code 1L, which means the deemed distribution is subject to regular income taxes and 10% early withdrawal penalty. But does that mean do I just stop paying interest on the loan since its in default? I'm a little bit confused as to what happens to the loan after default.
Many thanks.
Top Comment:
After the default, you no longer have a loan.
Are there creative tax saving ways to have employer provide student loan assistance?
Main Post:
I work at a small PP setting in a procedural specialty. It's a true mom and pop operation and I'm working on a base salary until I develop a patient base. I'm probably losing the practice money right now, but the owner is quite generous and we have a good relationship.
I am wondering if there are ways to structure reimbursement such that my employer pays down my student loans directly. Could structure this as a bonus or monthly. I haven't brought this up to them yet because I want to understand the legality of it and whether a structure like this is allowed.
Essentially, I would like my practice to directly pay down my loan balance rather than paying me, I get taxed, and then I pay down my loans with that money anyways.
Is this legal and above board? Is it frowned upon? Is it illegal? Is there a way to do this at all?
Top Comment:
Section 127 allows employers to pay employees $5250/year, tax-free, for education assistance* and student loans (from 2020 - 2026, though there is an effort to make this permanent).
*Education assistance, in this case, means education for the employee that either isn't directly related to their job or isn't a requirement for their job.
Education that is a requirement for their job, but not to obtain their job**, can be reimbursed without limit tax-free. **A physician couldn't reimburse themselves their education costs after starting their physician job, because the education was required to get there in the first place.
where to get commercial vehicle loan with no tax returns. 20k
Main Post:
I started a trucking company last year, previously I Was struggling but making ends meet. But things are getting a bit better as I can book more and better loads after having my company open a year.. I have a good credit score just under 800, I have been trying to find a reasonably priced loan to get a water truck so I can get on a firefighting contract, it's every 3 years so I need to get the truck soon to get it ready for the deadline or else I'm sol. I have decent bank statements if I could find a statement loan. I'd like 2-3 years term to avoid stress, but plan on paying it off in 3-6 months. When I've talked to A few people my credit union wouldn't do it for a commercial vehicle, the ones advertising on equipment sales page said the truck is too old for their lenders. I don't truck credit karma as I heard they gouge the interest. It's a 1996 Mack with only 155k on it so lots of life left and has just the right size tank I can ask more on the fire contract. It appears to have been used for fire before so mostly setup already. The dealer does in-house financing but has been slow to respond the lady in charge has been on vacation or something. Anyone have any ideas where I may find funding?
Top Comment: Chase does commercial vehicles lending and also check out Ritchie bros financing they usually have better rates.