Mortgage Killer Accelerator

Strategy 92 of 107 · new for the five-year plan

Owners of an S or C corporation: get reimbursed tax-free for home office and mileage

Most predictableFrom new cash flow, not your paycheckFive-year size: helps at the margin

What it is

Set up a written accountable plan in your company.

Steps

  1. Set up a written accountable plan in your company.
  2. Submit records for the business share of home costs and business mileage; the company reimburses you tax-free.
  3. Send the tax saved to principal.

Repeat: Monthly or quarterly.

Measure: Tax saved.

Try it in the calculator Enter its amount in "Yearly amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Records are required; excess must be returned.
  • The company loses nothing it would not deduct anyway, but get a CPA to set it up.

Who it fits

Business owners

Needs

Owns an S or C corporation and works in it

How predictable

Most predictable: once in place, the payoff date is arithmetic

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (business owners). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: set up a written accountable plan in your company.

Suppose it brings $1,500 once a year on principal. The loan would be paid off in 25 years 4 months instead of 30 years, saving about $70,138 in interest. To finish in five years, they would still need about $3,852 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sequences that use it

Sources and more information

Where to get help

Related strategies

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