WIX Archives
Interesting tax dodge!
Posted by Another Anon on Fri Feb 21, 2003 11:10:33 AM
In reply top David Price's Swordfish sold posted by Dennis Bergstrom on Fri Feb 21, 2003 10:39:35 AM
He is basically loaning the CAF the money, then the "donation" allows him to write off the interest he could have gotten had he been a bank giving a loan (but of course, he has none of the overhead or federal regulation!). The interest "donation" money he will deduct off of his taxes is probably much higher (like at credit card rates since it is cash he is getting in return) than a secured loan using the airplane as collateral. He has no risk though, since he will hold title to the airplane. Maybe by the time the CAF gets around to repaying the purchase price, the "value" of the airplane will have increased and he can write off the "capital gains" as a donation as well.
I'm not saying that this is a scam, and I don't think it is illegal, only that it is interesting!
: This gentleman will donate the Sword
: fish to the CAF after he is repaid the purchase price. The
: CAF First Observation Detachment (FOD) will be responsibl
: e for raising the funds to repay the loan...