Dallas, TX · Member since 2014 · 650 posts · 53 votes
I've never done this before. I would pay them back shortly (probably 6 Months or less) at a lower rate than a margin loan from my stock account.
Whole reason for doing this is to avoid a tax event by selling stocks to pay for part of my downpayment
I have a couple of options
1) they could pay me as I do some side work for him and he could 1099 me
2) he could pay pal me and I'd pay him back over a couple of months (if I borrowed margin it would be about 8% so all of this is about saving me several hundred $$$).
What is the appropriate way to do this in the most tax advantageous way? His preference would be to somehow run this through his business if possible.
Dallas, TX · Member since 2014 · 650 posts · 53 votes
9y
No I'd pay 100% of the down payment myself. After that, days or weeks later, a colleague would loan me money at half the rate to help pay down the loan I make to myself from a margin stock account at 8%.
Real Estate Investor · Macedon, NY · Member since 2016 · 251 posts · 290 votes
9y
You're talking about reducing your interest rate on $30,000 from 8% to what, maybe 4 or 5%? If you're going to pay it back in less than 6 months why even bother? The savings can't be enough to offset the aggravation can it?