Posted by Goose on January 18, 2012 at 19:10:20 from (173.190.237.126):
In Reply to: Re: Eqipment loans posted by donjr on January 18, 2012 at 17:37:10:
You have to be careful with depreciation, though. Depends on purchase price, selling price when you sell, and how long you keep the equipment.
When I was farming in the mid '80's, there was a time when a lot of farmers were going under, and you could go to an auction and buy machinery for 50 cents on the dollar, or less. I bought an 856 Farmall, put it on a 10 year depreciation schedule, used it 9 years, and quit farming.
By the time I quit farming prices had gone back up and I sold the 856 for within $200 of the price I'd paid for it 9 years earlier. In getting my taxes squared away, guess what? The IRS wanted their depreciation back. It's called "recapture". In effect, I bought the tractor all over again, as I had to take a loan to repay the IRS the depreciation.
If I hadn't needed the money at the time, I could have kept the tractor and it wouldn't have cost me anything.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
... [Read Article]
Latest Ad:
Sell 1958 Hi-Altitude Massey Fergerson tractor, original condition. three point hitch pto engine, Runs well, photos available upon request
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.