20 Miles West of Indianapolis Indiana | Been weighing the pros and con's of this scenario in my head a lot lately...
I'm wanting to pattern tile a farm my wife and I bought fall of 2013 this fall after soybeans are harvested. I've not talked to any traditional lenders about a loan yet, and I've considered trying to pay cash for the project as well. (Which is possible, but could become tight too).
I'm considering a 401K loan from my employer. The project could cost up to $31,000 if I do everything I want and hire a lot of the work done. Doing most of it myself is an option as well to save some $.
I can borrow the $ for 60 months which should be about right on payback timeframe as well I believe.
Supposively all the interest is paid back to myself and my only out of pocket $ is the paperwork fees (maybe $250).
If I'm paying interest to myself back I cannot deduct it correct? Unless I want to send myself a 1099 and then also pay taxes on it right?
Are there any other cons to this situation? Other then if I lose my job? Which I see myself being there 5+ more years at least...
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