如何投资5万元
- 主题发起人 xu30318
- 开始时间
利息这块儿，单独走，别一张支票还给他们。Invest in stock market is the best choice for growth, but no one likes to take the risk of slumping market.
One one wanted to pay tax but at least you want interest earned are tax deductible.
So, here is my suggestion but not recommended for execution unless discuss with licensed professional.
Here are the steps to execute:
1) Put your $50000 into your mortgage, and obtain a secured line of credit.
2) Borrow $50000 from your secured line of credit to invest.
3) Invest in a high-risk segregated funds which has 100% guarantee of principle.
4) Any money earned can be tax deductible against the interest incurred on the secured line of credit.
This strategy can be used only:
1) You don't need the money in short term since seg. funds are usually lock in for a period of time
2) Fund must be 100% guarantee of principle, some only has 50%, or 75%.
enjoy.
One one wanted to pay tax but at least you want interest earned are tax deductible.
So, here is my suggestion but not recommended for execution unless discuss with licensed professional.
Here are the steps to execute:
1) Put your $50000 into your mortgage, and obtain a secured line of credit.
2) Borrow $50000 from your secured line of credit to invest.
3) Invest in a high-risk segregated funds which has 100% guarantee of principle.
4) Any money earned can be tax deductible against the interest incurred on the secured line of credit.
This strategy can be used only:
1) You don't need the money in short term since seg. funds are usually lock in for a period of time
2) Fund must be 100% guarantee of principle, some only has 50%, or 75%.
enjoy.
There is no tax impact for you to get money from your in-laws (or any other individual, as a gift) to pay your mortgage. Just watch you do not pay more than the maximum allowed without penalty.
Regarding to borrowing money to invest in stock market, note that the interest can be deducted from your income not your capital gain. So if your income tax rate is 40%, then you get 40% interest back.
You also need a statement from the bank saying that you borrowed the money for investment purpose in order to make claim in your tax return.
Regarding to borrowing money to invest in stock market, note that the interest can be deducted from your income not your capital gain. So if your income tax rate is 40%, then you get 40% interest back.
You also need a statement from the bank saying that you borrowed the money for investment purpose in order to make claim in your tax return.
Can you explain a bit further?
If you get a 5 yr loan from the bank for investment purpose, the bank will give you a statement at the end of each calendar yr saying how much interest you paid. Then you can deduct this interest from your income when you file your return, so you do not pay the income tax on the amount of interest which you otherwise will have to pay. If your income tax rate is 40%, then the tax you saved is 40% of the interest. Does it make sense?
If your income tax rate is lower, then you save less, meaning that you get less interest back.
Personally I will not borrow money to invest in stock market unless it is the "right" time to enter the market (but who can be sure), because effectively you risk more money (i.e. some interest) than you actually invest. I would rather save the money and invest over the time instead of invest all at the same time. But this is more personal choice.
Thanks Helen, here is my question.
If I borrowed 10k from a secured line of credit at 12% (example only), so after a year the total interest accumulated (compound annually) will be 1200$.
Since you mention earlier: 'note that the interest can be deducted from your income not your capital gain'
2 scenarios:
1) So, my investment made money ( both in interest and capital gain, say 1000CG, and 200 interest) and no other source of income. How does it work?
2) So, my investment made 100% CG, 1200$?
If I borrowed 10k from a secured line of credit at 12% (example only), so after a year the total interest accumulated (compound annually) will be 1200$.
Since you mention earlier: 'note that the interest can be deducted from your income not your capital gain'
2 scenarios:
1) So, my investment made money ( both in interest and capital gain, say 1000CG, and 200 interest) and no other source of income. How does it work?
2) So, my investment made 100% CG, 1200$?
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不像冒险去买些稳定的例如utility公司的income trust.
OKay, I will clarify:
1) 200 interest will be added to your other income (if any) directly, while only 50% of 1000CG will be counted as your income, so total income from the investment that will be added to your other income (if any) is 700. (Nothing fancy here, pure tax rules.)
Now, how much interest you get back simply depends on your tax rate. If your taxable income is so low that you do not even need to pay any tax, then you do not get any interest back. On the other hand, even if you lose money on your investment, i.e. you have more capital loss than interest earned, as long as you pay tax on other income, you will save some tax because you can deduct the interest you paid for the loan from the other income.
2) If your investment only produce CG, then you can not claim the interest. You can only deduct the interest you paid if you invest to earn income, e.g. interest and dividends. Of course, you can have CG if you trade.
Hope this explains.
