Thread: Cobra Financing
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Old 06-15-2009, 02:00 PM
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Quote:
Originally Posted by jwd View Post
As to "giving it all to the IRS" please explain how it makes sense to pay $10,000 in interest only to deduct $3200 from your taxes. To me, you just lost $6800.
Of course it makes no sense (financially speaking, that is)... and he is probably laboring under the mistaken belief that the federal estate tax is somehow going to take all his money when he dies. Really, all he's doing is lowering the amount of money that he will be leaving his kids, or his wife, or the church, or the Society for Krishna Consciousness, or whatever. But that's certainly his right, so long as he fully understands what he is doing. Actually, it's his right even if he doesn't understand what he is doing -- and perhaps that's the case here.
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