carloan - deductible expense. This is no longer true...

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“Car Loan” case Discussion Questions 1) What do you think of Prof. Keppel's calculations? Are they right? What should one conclude from them? 2) What do you think of “Sperling’s rule” [that it’s a good idea to borrow if you can earn an interest rate equal to at least half the interest rate on your loan]? Do you agree? A note on taxes : When this article was written (in 1985), interest on auto loans was a tax
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Unformatted text preview: deductible expense. This is no longer true (today, the only interest deduction allowed on personal income tax returns is home mortgage interest). Thus, today, you would pay taxes on any investment interest income, but receive no offsetting tax deduction on your loan interest payments. 3) How would this change in the tax code affect your answer to question 2) today?...
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carloan - deductible expense. This is no longer true...

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