Getting ready to take the plunge....?

[willy1947]

Well, I've almost gotten up enough courage to buy a Kubota L3830 w/FEL (heavyduty bucket with teeth), 4wd, R4 tires, and w/GST transmission ($21,000). I'm just having a difficult time calling the dealer /forums/images/graemlins/confused.gif

I have to have a tractor, but do I need this much of one? ...yes....I think so /forums/images/graemlins/confused.gif (See my previous post, tractor for 62 acres) I've always loved heavy equipment and now I can have some, but should I do it? It makes things pretty tight for a while, but it will get better. I guess the thought of going in debt for my land and then adding a tractor on top of that, not to mention all of my toys now.... /forums/images/graemlins/frown.gif But I've wanted one of my own since I sat on my grandpa's lap on his tractor.

I keep looking for used, but haven't found anything. I have mowed yards and cut wood on the side for 12 years now. I always find a way to use my equipment to make me some money. I guess having a real tractor wouldn't be any different. I can find a way to make some extra money with it too. An L3830 probably wouldn't be too much.

But what happens if I don't need that much. How will the resale be?

Ok, starting to babble. Just looking for some encouragement or someone to bring me back to reality.

Dave

 

[JRobyn]

Been there. Done the deal anyway (L4330, LA853). When I REALLY felt better was after visiting the tax guy. I was pretty amazed at how large of a deduction a tractor can be!

 

[willy1947]

How did you get a tax deduction? I will have 62 acres, but won't be farming on it. I might cut the hay or have it cut, but that is it.

What will it take to get it as a tax deduction and or not have to pay sales tax on it?

Thanks,
Dave

 

[_RaT_]

I won't even begin to answer you on the financial end as that is something that is pretty personal and I would hate to advise you to do something that could make it tough on you.

The L3830 is a pretty stinkin nice tractor. It is really a pretty small tractor, especially with the loader off making it really ideal for general use around your acerage. I have over two hundred hours on mine in about a year of use. I have another tractor that is getting tired of just sitting, but the L3830 covers all the bases. My much larger, more powerful International gear drive does a decent job of dragging a mower around, other then that, I have little use for it since aquiring the L3830. Having a tractor around makes doing jobs that you simply think about doing and wishing you had a tractor on hand to do it with much more likely to get done.

 

[r0GuE]

Look in to those tax advantages. Cut the hay, sell the hay, write it off. If you've cut the hay, and loose money (which you will based on tractor depreciation, you've shown a loss. Good for taxes, bad for tax and spend (fill-in-the-blank)s.
I'm no accountant, so get some good advice. That said; we're all in debt up to our ears (except for a few older guys who have gotten ahead of the curve).

I'm spending a huge pile o cash for 3 acres just because I like the view of Cherry blossoms in the spring.

 

[jmc]

Dave,

That's a great selection and realistically, after looking shiney, new, state of the art machinery, any used tractor is going to look rough in comparison. A while back, I looked at the some of the new stuff and decided to keep my Ford 1920. Not because of the price but because I didn't like some of the "advancements". Recently I made the mistake of looking at the Kubuta Grand L series and decided to buy one. (4330GST) Haven't signed any papers yet because several dealers are sending over people to look at the Ford 1920 trade in.

If you are interested in a used tractor for about half of what you'll pay for that 3830, this Ford would be a good choice. 4wd, loader, remote valve, well maintained. Put every one of the 1140 hrs on it myself. Picture attached. Its about 30 miles from you.

John
jmcdaniel001@ameritech.net

 

[DieselnHooters]

Go take a look at John's 1920, test-drive it, those are really nice tractors+ it has only 1100 hrs, at 100 hrs a year you could be set for the next 50 years. Its on the small side for 60 acres IMHO but since you have already made up your mind on a CUT instead of utility or ag, this one sure fits the bill.

 

[frank_f15]

i labored over the same thing, but when i finally signed the papers i realized it was not that big a deal. not to say $21,000 is chump change but i looked at it as at any time u can sell it and get most of your $$$ back if u needed to. so u are not really spending $21k u are just putting it in your garage, and the interest earned is the use u get out of it. make any sense? /forums/images/graemlins/confused.gif

 

[willy1947]

John,

Please get in touch with me, I would like to see your machine. I work at Baxter in Bloomington. I can be reached at 812-327-8992 (Cell) or 812-355-2805 (Work, direct line). I've also sent you an email.

Thanks,
Dave

 

[KiotiJohn]

Willy, just one comment on resale. If you were to buy the tractor new, and in only a short time decide to sell, you would lose more money than if you held it for a while. New tractor financing can make just a couple hundred hour newer used tractor less appealing. I'm sure you may have read several threads here that talk about this. Believe it or not, you could do what you need to with a smaller tractor, but there probably won't be a huge difference in price and you'll surely have enough tractor with this one. You could easily spend that much and more for a new car, and it won't do much more than get you from one place to the next. If you get yourself a business license and set up for business you can depreciate the tractor as a business expense. The IRS only requires that you be "trying to make a profit." Of course, you will need to keep all the receipts, but the payback can be generous. You can write off any losses (depreciation or expenses higher than income) I believe for 5 years against not only the tractor income, but also your regular income unless you incorporate the tractor business. I think then the IRS makes you quit! LOL John