Help me making a final decision L4740 vs M7040

[beppington]

I don't know anything about the 7040, but the Grand L's are great :thumbsup:

That said, if you already know you'll want the larger 7040 within 5 years, I'd get it now, rather than trading in/ trading up. Sounds needlessly expensive doing it that way.

 

[canoetrpr]

Says who? You can earn 5$ and be an HST registrant. Just don't have to until you're over 30,000$.

I'd go with the M. I went L and its been great but farming tasks are not its best use.

Did not realize this. I'll have to chat with my accountant. Regardless my first year of revenue will be 2012. Until then all I have been running is a loss and have not been claiming it as the CRA is down your throat on farm losses for small operations. I might actually go back and re-file once I have shown some profit.

I do agree in the nice large ags on the M. It does get wer around my place and on the Ls the R4s are the only way to get some flotation.

 

[slowzuki]

The test for setting up the farm as a business is a) is it run as a business b) is there a reasonable expectation of a profit

You can have restricted farm loss as long as you need as long as it is operated as a business and there is business plan showing one day it will turn a profit.

If you are going to HST register, do it early, as you can pay it back if you get out. If you are late, you can only go back like a year even with receipts.

There are many ways to defer many of your expenses to save them to claim once you start making a profit, you don't have to claim the max allowed depreciation, you can carry small tools that are normally claimed as a current expense as a CCA claim for the future, you can file a restricted farm loss to be applied against profits in future years.

I was dumb my first year, I claimed everything max, had my loss cut to the restricted farm loss limit throwing away thousands in future deductions. Now 7 years in, my profits are starting to grow and my startup expenses to offset the income are all pretty much gone as interest portions of land mortgage falls off etc. I've got the restricted farm loss from the first year I can still use then I have to start paying the taxman.

Don't be afraid of an audit, get the guides, keep detailed records of every cent you bring in and every cent you spend. They are more aggressive with people trying not to claim cash income because it is so common, if you claim all the cash and in-kind payment you get, they are usually pretty easy to deal with. Don't claim it and you can go to jail.

If you get overzealous claiming an expense, worst they can do is force you to repay it. No jail.

Did not realize this. I'll have to chat with my accountant. Regardless my first year of revenue will be 2012. Until then all I have been running is a loss and have not been claiming it as the CRA is down your throat on farm losses for small operations. I might actually go back and re-file once I have shown some profit.

I do agree in the nice large ags on the M. It does get wer around my place and on the Ls the R4s are the only way to get some flotation.

 

[canoetrpr]

So far there are only two considerations that have come up that I think might push me towards the GL4740 despite the price of the tractors being only a couple of thousand apart.

1. Excellent discussion on this thread where I asked which rotary cutter to get for an M7040 on cat1 vs. cat2 and the risk of damaging any ground engaging cat 1 implements I have e.g. box blade.

2. I won't be able to get the M into my pole barn which I clean once a year with a rake but the GL will fit. However, I can do that with my MF 255 as it just fits.

I'm going to look into the HST registration (tax not the transmission) that my fellow Canuck slowzuki raised. If I can get the taxes back on a GL then that shifts the equation.

 

[droy]

Quickly read thru, may have missed a couple of points that would be BIG items to consider if I were in your shoes.
I own a L4740 with fel, am disappointed that I didn't take a closer look at the M
(1) The rough ride; high on my to do list is installing an air ride seat, that I think comes standard on the M. (Approx $1000+ install on the L if you diy)
(2) The fuel consumption of the L is horrible IMHO. You may want to compare fuel consumption between the two.
I usually shred approx 10 acres every two weeks, used to do it with a NH TC33DA and half the fuel. Now in all fairness, the L4740 is cab & ac, with 6' cutter, the NH was open station with 5' cutter and 14 less ponies, but still......
(3) Filling that L model fuel hog still requires propping a five gallon bucket on the hood while the easier to fill tank for the M is at the step.

Whatever your choice, happy tractoring; in spite of my complaining, I still do enjoy my L.

 

[gwdixon]

I think that after 3 years the OP may have already made the decision.

However, others having the same issue may gain from the most recent post.

 

[droy]

I think that after 3 years the OP may have already made the decision.

However, others having the same issue may gain from the most recent post.

LOL, Methinks I should have gone to bed about three hours before reading/replying. Had I read the thread AFTER waking up this am, with coffee in hand, possible I would have caught the posting date.

 

[Retired Iron Peddler]

However, others having the same issue may gain from the most recent post.

I recently went through a similar "exercise". In addition to cab and air, a Cat II 3-point hitch and a hydrostatic transmission were high priorities. I decided on the L5460HSTC for the hydrostatic transmission and it has a Cat II hitch.

Bill