Question regarding TAF's loan on BK's house

stfu

Damn! that's cold. cancel the loan on a man's house.

maybe this isn't the right time to do something like this.

let's wait and see where we end up this season first?

let's watch the games before we start cancelling loans.

My only question is why a man with his income level, including before coming to LSU, needs a loan to buy a house. Even at ND he was making around $3 million a year. Surely, he was bringing home $2 million after taxes. If you can't squirrel away a million dollars after how many years of that income, no wonder the man can't manage our team.

This is one of the dumbest things I’ve seen posted regarding the Kelly situation. Do you think it’s a wise decision to intentionally be a dick to the head football coach, and how do you think that plays when trying to hire another one?

He’s milking it. BK is BS

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Can TAF cancel it without violating the terms of his contract? We need to make it hard on BK so he quits at this point.

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Yeah. That would do it.

Kelly could never get another loan.

Retard

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He's likely using the debt as a tax avoidance mechanism

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You're he's paying interest on the loan with after tax earnings to increase his Schedule A deductions?

If he pays $5,000/year in mortgage interest, assuming he pays an effective tax rate of 30% he would save $1,500 in federal income taxes.

So, he's borrowing money to save $1,500? Sure, I'd do that, but I don't make $10m a year either.

It's more likely that he has the $1m+ in investments that could have been used to purchase the house outright, however, those investments in this market are earning 10%+ annually, or $100k+. If the mortgage is at 6% from TAF, then he is still earning (in very simplistic example) 4% on borrowing and leaving his funds invested.

Now as interest rates drop, if the mortgage is fixed, the spread will shrink and at some point, he can liquidate the investment and pay the mortgage off. Borrowing lets him uses OPM to still earn 4% in this example and gives him flexibility to exit when the situation changes negatively.

I don't believe it's about a tax strategy, but more of an investment strategy.

Funds to pay off my house are invested conservatively and have earned over 15% YTD while my mortgage sits at 2%. No way I'm taking $ out of this market to pay off a 2% borrowing.

There’s real ruhtards on this board lol

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Can TAF cancel it without violating the terms of his contract? We need to make it hard on BK so he quits at this point.

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And what fool would follow him at LSU after you did that?