we did not need to... if we did we would become old prematurely
Took out a loan to transition to full-time trading. 24 years old.
- Thread starter wabu27
- Start date
The interest tax deductible ?
I think only if its a business loan for a business entity that the trader is trading thru depending upon the country.
Thus, I don't think its tax deductible if its a "personal loan" for a trader.
wrbtrader
And business loans are only deductible to 30percent of your income.
Depends on the country you are living in. In many European countries one are able to deduct one third of interest against salary.
If you get a $40,000 unsecured personal loan for 5% you pay a effective rate of 3.33% annually. You need full time employment of course to get a low borrowing rate from retail bank.
The interest amount is deducted from you income tax. The government/state will pay part of your interest. They subsidize your borrowing.
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...depending upon the country you live in (country location of the business loan).
wrbtrader
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yes. I was assuming he was in the USA.
I live in Québec, Canada but I'm a citizen of France and the U.S.
Own business in France and Canada...both with business loans. I'm not too familiar with business loans & taxes in the U.S. even though I grew up there. Yet, I do have a tax account familiar with taxes in all three countries that charges me a mint every year
Yet, he has guided me successfully thru two audits
Tip: Be careful about what you disclose online...the info can be used against you.
wrbtrader
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If OP is 24 yo, then you have roughly 60 years of opportunity, until 84.
Suppose you have 10K of cash , then
1) with annual 5% compounded, 10*1.05^60 = 186.7919K is expected.
2) with annual 10% compounded, 10*1.1^60 = 3044.816K is expected.
If you have saving of 100K, then
1) with annual 5% compounded, 100*1.05^60 = 1867.919K is expected.
2) with annual 10% compounded, 100*1.1^60 = 30448.16K is expected.
Suppose you have 10K of cash , then
1) with annual 5% compounded, 10*1.05^60 = 186.7919K is expected.
2) with annual 10% compounded, 10*1.1^60 = 3044.816K is expected.
If you have saving of 100K, then
1) with annual 5% compounded, 100*1.05^60 = 1867.919K is expected.
2) with annual 10% compounded, 100*1.1^60 = 30448.16K is expected.