Tax write offs like your example above are not sound business, especially for a Hummer that depreciates into the depths of ****.. Eventhough you may be able to write off the whole thing in one year, you still have to pay for it without any more tax deductions for the following years. That can put on a cash crunch if you do not understand the whole picture first.
I usually won't buy something that doesn't make me money just to save on my tax liability. I would rather pay the tax and pocket the money. But, using Roy's appraisal of a 30% loss, I stand to save over 30% of the overall trade cost difference anyway from the sec. 179. 30% of a 10K trade is 3K in 179 savings. I'll trade up to brand new equipment every 5 years for 7+K..
I do the same with my trucks, always buying new every three to four years.
I called my local monopoly, I mean JD dealer, and they told me that there may be a model change come November, so I may wait to see if the 3720 evolves into a new model before I buy anything.
I usually won't buy something that doesn't make me money just to save on my tax liability. I would rather pay the tax and pocket the money. But, using Roy's appraisal of a 30% loss, I stand to save over 30% of the overall trade cost difference anyway from the sec. 179. 30% of a 10K trade is 3K in 179 savings. I'll trade up to brand new equipment every 5 years for 7+K..
I do the same with my trucks, always buying new every three to four years.
I called my local monopoly, I mean JD dealer, and they told me that there may be a model change come November, so I may wait to see if the 3720 evolves into a new model before I buy anything.
