Suze Orman says these are the worst money moves

[Olde Hornet]

Suze Orman says these are the worst money moves

Suze Orman says these are the worst money moves

Don't do these things and you'll enjoy a better financial life, the money guru says.

www.yahoo.com

The personal finance guru will be the first to tell you that what you don't do with your money may be even more important than what you do with it.

Here are 34 major money don’ts — straight from the expert.

1. Don't be too quick to buy a home
2. Don't lease a car
3. Don't co-sign a loan

 

[jsupop33]

I think the car lease depends on needs. I think a lease is better and less headaches if you need to just be able to go. I lease mine through my business.

 

[jsupop33]

Buying could still be a better deal for you.

Why? Depreciation.

For many business owners, that depreciation lowers their taxable income substantially. Not to mention any other costs associated with the car are usually deductible as well - registration, insurance, repairs, maintenance, and gas. Leased cars are not depreciable.

However, you're right, the best way to own a car is within a business. Most of the time, almost everything is deductible.

You can deduct the entire lease. I looked at both ways and leasing seemed to be a better move at the moment. However, my lease is up this year and I am considering buying this time around.

The only downside is commercial insurance is higher.

 

[jsupop33]

If you got a loan to buy the car, the payment would be deductible also. The payment and interest. Then you still get to deduct depreciation.

So, it's deduct the lease payment versus deduct the loan payment AND depreciation. Being able to do both significantly lowers the cost of owning a car and adds profitability to your business. Easily offsets the additional commercial insurance cost.

You can't deduct the loan payment. Well, not legally anyway lol. You can deduct the loan interest and the depreciation or mileage.

 

[jsupop33]

Okay. Mileage plus loan interest.

Still, depreciation is deductible when you buy. Not deductible when you lease. And that additional reduction in taxable income makes buying worthwhile over leasing for many business owners. That was my original point.

Understood. I am thinking about it. My lease is up in October and I think I may buy.