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i am building a garage and have money in a money market account.is

Customer Question
it better to pay the...
i am building a garage and have money in a money market account.is it better to pay the 9,000 out of that account or pay with my line of credit and pay payments to the line of credit out of the money market account
Submitted: 5 years ago.Category: Tax
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4/1/2012
Tax Professional: Richard, Tax Attorney replied 5 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,039
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Good evening. It really comes down to whether you are earning more on the money after tax than the cost of the funds after tax. Given today's interest rates, the money market account can hardly be making any money; thus, it would likely be that you would better to use the money to pay for the garage rather than earn nothing on it and pay a much higher rate on borrowed money.

 

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Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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