Buying Advice anyone looked at how much per hour it costs to own a cut?

[smstonypoint]

I agree depreciation is tricky. One's CPA needs to be very good or one will be paying back to the IRS the depreciation upon the equipment disposal.

Jim,

To muddy the waters, there is economic depreciation and then there is depreciation for tax purposes. They are not identical. See Understanding Economic Depreciation for Farms and Ranches.

Steve

 

[crazyal]

Then why would you follow this thread?? I'm putting you in the category that don't wanna know!!!

I follow lots of threads that really don't apply to me. That's the fun of TBN. Sometimes I offer my opinion, other times I just read. Usually I learn something, even if it's not related to the subject.

 

[slowzuki]

Yeah, in Canada there is a maximum per class, motorized equipment is all lumped together. You don't have to take it all but it has to reconcile once you sell off later and you pay/receive the difference in year of disposition.

Jim,

To muddy the waters, there is economic depreciation and then there is depreciation for tax purposes. They are not identical. See Understanding Economic Depreciation for Farms and Ranches.

Steve

 

[kg7il]

First, some assumptions.
1. The work done has no benefit or value for the calculation.
2. The tractor has a know life for hours, years of service and condition.
3. The sale value or residual value is known.
4. The price of fuel, lubricants, service is known.

I can't make any assumptions on those items, so I can't calculate what it costs me.

I can count the fuel. 10 gallons for 8 hours of real work.
I can count the service items, such as lub/filters and such.

But for me, the $20K spent on the tractor is realized in work done around the place, and the future value if we sell, because I am cleaning up 36 stump/slash piles.

This makes my tractor practically free.

 

[genesusie]

Guys, don't worry about the price of a tractor or the cost of ownership. Believe me they are way down on the list of expensive toys and tools. Classic Corvettes, boats, and airplanes are way, way, way out in front in the initial price and cost of ownership.

 

[vtsnowedin]

Guys, don't worry about the price of a tractor or the cost of ownership. Believe me they are way down on the list of expensive toys and tools. Classic Corvettes, boats, and airplanes are way, way, way out in front in the initial price and cost of ownership.

Blasphemy, Heresy and Atrocity!!! One can NOT compare the known proven value of a tractor for any property owner to the "holes in the road", "water" or "tarmac" that Corvettes, boats and airplanes are known to be!!
We tractor owners are the sensible ones that have bought what will make our families safe and secure come what may. The Vetts. will be burned out piles of fiberglass while we carry on.

 

[zzvyb6]

My tractor pays me to own it. I take it for rides, let it eat fresh hay and stay in a nice warm stall, play in the snow and I put fresh makeup on her when we go into town.

If you really need to know, maybe you should ask yourself how many Hummels, beanie babies, tea cups, Nascar die casts, 33 rpm record albums and DVD movies you would or could have bought instead. All you would miss in buying a tractor would be the grief over some yo-yo offering you a dime apiece for a boxed lot of all that crap at your most recent yard sale.

 

[genesusie]

Blasphemy, Heresy and Atrocity!!! One can NOT compare the known proven value of a tractor for any property owner to the "holes in the road", "water" or "tarmac" that Corvettes, boats and airplanes are known to be!!
We tractor owners are the sensible ones that have bought what will make our families safe and secure come what may. The Vetts. will be burned out piles of fiberglass while we carry on.

Wow, you need to relax not get so upset. Sit down and have a beer, cool down!

 

[vtsnowedin]

Wow, you need to relax not get so upset. Sit down and have a beer, cool down!

As a matter of fact I have a beer in hand at present.:licking: Not a bit upset, just poking a little fun. But if the shoe fits?

 

[genesusie]

As a matter of fact I have a beer in hand at present.:licking: Not a bit upset, just poking a little fun. But if the shoe fits?

I would have a beer too but gonna go spend some time with the grandsons this evening. Oh yeah, my shoes fit fine, thank you, but with the weather as it is I'm gonna wear boots.