Originated From
RealEstateProArticles

Boat owner financing

Hi, we own a boat that we want to sell to buy a different boat. We have an interested buyer if we provide owner financing. He has proposed 30k down, $1150 monthly payments for 8 years and 20k at the 6 year point; he calculates that this adds up to a 160k offer. I have lots of questions but I guess my first one is, wouldn't we be paying income tax on this amount making it a $112,280 offer? Would the ideal scenario be to do a trade on another boat and get credit for the value of the boat (130k) and eliminate the hassles? Also, one more scenario is that a boat we are interested in buying is offering to do owner financing. Is there a way they could owner finance our boat for this interested guy, instead of us doing it and then lower their price to us by that amount? Info much appreciated!

Liked this question? Tell your friends about it

4 Answers

Order by
Oldest to Newest
Newest to Oldest
Votes

If you get paid $160 K on an installment basis, and your cost basis is $80 K, then you will be paying tax on the capital gain (not on all the payments) and some of that payment money is interest which is current income.

http://www.irs.gov/taxtopics/tc705.html

I didn't calculate the interest on this note because there is so much data missing.  However, on to your question.

Your interest earnings are reportable and taxable.  However, with the exception of home mortgages, interest on loans is NOT deductable.  You may have a depreciation deduction for your loss on the boat, though. 

In any case, considering that we're discussing a six-figure transaction, it may be best to consult a tax attorney to finalize the bargain.

Faith makes us complete thinking entities. Without faith, we do nothing of worth.

I am not know,I'm not familiar with this aspect.

yet I can't help you a lot on this topic but i had a link through which you will not only get a smart advice but you can also get financial help as well as through details of all the related question just visit

Loan Sanction.com or http://www.loansanction.com/

Car Loan, Personal Loan, Home Loan, Bike Loan, Loan against property, and all other types of loan at lowest possible interest rates.

Related Questions

Other people asked questions on similar topics, check out the answers they received:

Asked: What is auto financing?

What is auto financing?

Asked: I have heard of equipment financing...

I have heard of equipment financing. I would like to purchase equipment, suggest a good bank that can finance it.

Asked: Pre shipment finance for my Jetski imports?

Pre shipment finance for my Jetski imports?

Ask a Question... We'll forward it to people who know

More Questions

What kind of financing does ALJ United Finance deal with?

Established in 1979, ALJ United Finance is an Abdul Latif Jameel Company; the exclusive distributor of Toyota, Lexus & Daihatsu in Saudi Arabia, which provides car leasing deals through its more than 278 network of showrooms and branches. http://www.uis.com.sa/mobile/about.aspx

Where can I go for car finance in Dubai?

For car finance Dubai, look no further than Simply Life. Simply Life is a reputed company that'll get you the funding required to finance your new vehicle. For information on how to get started, check online! http://simplylife.ae/car-loan.html

Is trade finance useful in business?

Without a doubt, trade finance is definitely useful in enterprise or business since it permits you to fulfill your goals of trade development. To know much more about such services visit your most adjacent bank branch or ask your current banker about that. You can take advice from Financial Expert.

Where should I consult for used car finance?

MY TESTIMONY FROM A LEGITIMATE MONEY LENDER Have you been looking for a loan?Do you need an urgent personal or business loan?contact Dennis Hopkins Finance Home he help me with a loan of $300.000 some days ago after been scammed of $2500 from a woman claiming to been a loan lender but i thank God ...