I already have a full-time job and I'm wondering if it's better to buy a business or a house - I have the cash, just wondering what to do with it. The kind of business I'm thinking of is something that I can run somewhat hands-off like a laundromat, coin-op car wash etc. Primarily, I'm interested in the potential tax benefits.
2007-06-16 10:52:38 · 7 answers · asked by byron 2 in Business & Finance ➔ Small Business
I agree with the other person about asking for this advice here. I can't believe the pathetic advice you've been given.
First, these are 2 very different scenarios. You buy a business to generate revenue. You buy a house because it's a much better tax break than renting. If you aren't interested in generating revenue, buy the house. Borrow as little money as you can ... finance as much as possible. Invest as much of your own money as you can. Now, if you're interested in generating revenue, I would consider buying a business, but I would still also try to buy a house for the tax break.
2007-06-16 16:39:10 · answer #1 · answered by jdkilp 7 · 1⤊ 0⤋
If the business you buy is passive you can;t use the losses to offset your income. Regardless, the business won;t shelter your income unless you have a loss (but you dont want to lose money just to save a third of what you lost on taxes) or unless you cheat and dont report income which could land you in jail. A house however, will give you lots of nice deductions that will offset your regular expense of rent, and give you a deduction for your mortgage intrest and property tax which are neccesar expenses. Bottom line, buy a house
2007-06-16 10:56:49 · answer #2 · answered by Anonymous · 2⤊ 0⤋
forget tax, put cash in your pocket. You can write off all expenses of a business. A house is a liability that takes money out of your pocket each month unless its rented.. and even then.. things can happen. I say go for the business. Use the income from the business to buy your house and you're way ahead!
2007-06-16 10:56:01 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Buy the house. After you have some equity built up, take out a loan and use that to buy the business. Check with an accountant, but you'll probably be able to take the interst of the equity loan off your taxes and the expess of your business off your taxes.....TALK ABOUT LOVING UNCLE SAM... LOL LOL
2007-06-16 16:28:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Dear God, don't ask here. Ask a financial advisor. It strongly depends on what your exact situation is, and what you're trying to avoid. You've also got to look at what opportunities are available and how much time you have to put into them.
2007-06-16 10:57:19 · answer #5 · answered by John 4 · 2⤊ 0⤋
i kno sum ppl who own a bzness and also live in it at the same time, i can hook u up with **** loads of electronics if u want and u can sell um for retail price
2007-06-16 10:56:31 · answer #6 · answered by blue 4 1 · 0⤊ 1⤋
house of course coz it's not benefit-able
2007-06-16 10:57:28 · answer #7 · answered by jonselver2 2 · 0⤊ 1⤋