Are tractors and equipment a good investment right now?

[Skeletor]

tractors may not be an investment per Websters definition, but the cost of goods, especially those made of metal, is ballooning. I’ve been buying everything I can afford to pay cash for the last few years. I regret none of it.

I’m grateful I bought my 2021 horse trailer for $10,900, because the same model costs $15,999 right now.

I’m saved 50% building my RV storage barn a couple years ago, versus steel prices now.

If it’s heavy, and metal, and I may need it, then I’m buying it ASAP, before I’m priced out of the market.

I sold my 1979 tractor a couple weeks ago for a couple thousand more than I paid, and bought a new one last week.

That’s why I’m upgrading my tractor now. Going from a Massey 1725mb to a Massey 2860e with hoe. In a few years It’ll probly be another 10k with the way things are going.

 

[CalG]

You know, "investments" in dollars have never done a lick of work around the yards, for me.
It always takes real hands, backs and machines to get anything accomplished. Perhaps I measure "return on capital" differently than some do.

 

[WinterDeere]

That is the difference between being an individual taxpayer and being incorporated and doing business professionally. If you think for a second that big corporations are actually on the hook for taxes ever, you are sadly mistaken. We play in the same ballgame, just smaller.

It varies by state, of course. In PA, we must pay taxes on software and equipment not directly used in production. But yes, we do get to claim exemption on inventory and machinery purchased directly for the manufacture of goods, as tax will be paid on those goods by the consumer (sales tax).

 

[5030]

Every state has a different tax code which is why we have an accountant in the first place. He keeps track of everything we do business wise plus we have an attorney on retainer as some of the products I sell have a built in liability issue and we all know that today, lots of people are sue happy. All the products we make in the shop and sell worldwide has a hold-harmless included with each product along with very detailed use instructions but we all know about the sue happy environment we live in today, so I take no chances.

I equate that to people who buy new tractors and never bother to read the owners manuals and candidly with the new T4-5 Kubota's, the issues that bring them in the shop can most all be related back to the owners never reading the supplied with owners manuals. Kubota very specifically calls out the proper regen procedures that people ignore and then have issues.

I often think that people today lack reading comprehension. I do know they cannot spell for beans and that can be noted on this site regularly. Some of the posts on here make me laugh just reading the subject line.

I'd like to see the Fed and states go to a flat tax and eliminate all the complicated rules and regulations.

If you sit down and actually dissect what you pay in various taxes, a full 40%+ of your earnings whether it's from being employed or self employed go towards taxes and it's my opinion that taxing entities for the most part have zero fiscal responsibility.

 

[2manyrocks]

Had a teen in Sunday school class. His Dad was an attorney. Mom was a nurse. His reading skills were terrible, and to this day, I wonder how he got to high school with such terrible reading skills?

The cumulative tax burden from income, sales, and property taxes is more than most people realize not counting the indirect tax caused by inflation.

 

[oldrustysteel]

Had a teen in Sunday school class. His Dad was an attorney. Mom was a nurse. His reading skills were terrible, and to this day, I wonder how he got to high school with such terrible reading skills?

The cumulative tax burden from income, sales, and property taxes is more than most people realize not counting the indirect tax caused by inflation.

Thats why most taxes are taken from you at time of sale, or in the case of income tax, its withheld by the employer
so you never actually possess it. I have said for years that if the American people had to write a check at the end of the year for ALL the taxes they "OWE", there would be another revolution. And now, when you see what they use OUR money for, its a true slap in the face.

 

[CloverKnollFarms]

And, nowadays, if you don't pay enough through the year in the way of taxes, the government will FINE YOU, even if you do pay it in full by April 15th.

So, even if they do get their money by the filing date, they will still FINE you a little extra for keeping your money.

 

[5030]

And, nowadays, if you don't pay enough through the year in the way of taxes, the government will FINE YOU, even if you do pay it in full by April 15th.

So, even if they do get their money by the filing date, they will still FINE you a little extra for keeping your money.

I have to say that we have NEVER paid quarterly taxes, ever. Don't know how we slipped through that tax net, but we did and I'm all good with it and we will never bring that up, ever.

 

[CloverKnollFarms]

I have to say that we have NEVER paid quarterly taxes, ever. Don't know how we slipped through that tax net, but we did and I'm all good with it and we will never bring that up, ever.

Oh, these aren't quarterlies... I'm not a 1099 employee. This is not having "enough" garnished from my wages weekly. They will fine you for underpaying by a certain % of your tax liability

 

[DarkBlack]

And, nowadays, if you don't pay enough through the year in the way of taxes, the government will FINE YOU, even if you do pay it in full by April 15th.

So, even if they do get their money by the filing date, they will still FINE you a little extra for keeping your money.

Gotta luv it when you find out you were required to make quarterly estimated tax payments