Quote:
Originally Posted by opendoor
But you have to pay income tax on rental income, so why not make the interest payments on the $20K tax deductible by borrowing the money for investment purposes? The tax deduction effectively drops the interest rate by 25-40% depending on the person's tax bracket. That puts a variable rate mortgage in the 1-2% range.
Obviously if you're getting money loaned for free that shifts the calculations, but from what I understand most 0% financing is at the expense of other possible discounts. Car dealers aren't in the business of losing money so they're usually getting you somewhere else to make up for the lost financing income.
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That makes sense.
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