Dusty’s Budgeting Thread

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,610
Loserville. Population: 1
His interest rate is 10% which is still far above average and the maintenance done on it will hopefully not exceed the $25,000 standard deduction for a married couple filing jointly. Furthermore letting his wife file an itemized tax return sounds like a real great idea considering she has a degree in accounting and still thinks the $679 a month they're paying for this truck goes 100% towards the principal of the loan, despite having documents clearly outlining the interest rate.
The maintenance wouldn't be a standard deduction expense. He'd get a 1099 from Turo and have to file that on a Sch C. If he had $5k in revenue from Turo, he could write off the maintenance and any other fees/expenses related to that "business". It would probably be best/easiest to do a simple mileage deduction. at ~$0.57 per mile, if the car logged 5,000/mi for Turo, then he could deduct $2,850 from the $5k in revenue and he'd "only" be taxed on the net $2,150.

Either way...not a huge financial windfall.
 
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saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,610
Loserville. Population: 1
His credit Isn’t good. Do you think he suddenly is going to be able to get a better rate After next months fed raise it’s hard to see him getting better rates in near term (even good credit looks to be about 6.5% on used cars). I’m not saying he shouldn’t turo It. But he is sort of against a wall. Just mitigate the costs with turo and in 2 years he might have options. Because he sure as hell doesn’t right now.

Not even going to touch that end point not sure how thye would think it’s going towards 100% principal.
The difference between a $15k car loan for 5 years at 6.5% vs. 8.5% is $14/mo.
 

BigT

Hobo Crew
Nov 4, 2001
25,822
Trailer park
Dude listen. From what I gather in this thread you work from home 100% and I haven't seen mention of children. Let her take the car to work and you sit your ass at home and work until she gets off then go take care of whatever various errands may need done for the day.

You guys don't make enough to live in Vegas, you absolutely cannot afford two cars. Your life will not improve until you adjust your way of life to match your income, you will legitimately stay poor for the rest of your life being this financially retarded.

Unfortunately the mentality is I deserve everything I want just by existing.

I agree with you, more people need to live within their means and put in some work
 

Mike00

Well-Known Member
Feb 11, 2005
1,993
pa
The maintenance wouldn't be a standard deduction expense. He'd get a 1099 from Turo and have to file that on a Sch C. If he had $5k in revenue from Turo, he could write off the maintenance and any other fees/expenses related to that "business". It would probably be best/easiest to do a simple mileage deduction. at ~$0.57 per mile, if the car logged 5,000/mi for Turo, then he could deduct $2,850 from the $5k in revenue and he'd "only" be taxed on the net $2,150.

Either way...not a huge financial windfall.

Since he was complaining about the taxes I just felt it was relevant Is all - since he’ll get a 1099 as you said. It’s not rocket science.. he should be able to offset some of it since he thinks paying taxes on the income is so bad.

And no interest isn’t much differnece on 6.5 to 8.5 - it’s a low Principal. Which brings me Full circle to why even get rid of it? He’s already forced himself to eat the cost. Mitigate the cost with turo. IN 2 years he shold be able to pay a fair amount of the prinicipal down. And frankly the car is going to plateau in terms of value So he might not be upside down. He should be able ot be barely net positive each month from the numbers posted and mitigated tax offset.

Why sell it if he is just going to eat 100% of his mistake. turo it and see if he can dig himself out. Even if turo only made him $75 a month over the car payment. It’s a win for him at this point.
 

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