JD 5103, 5203, 5303

[rancar]

Real nice choice!! /forums/images/graemlins/smile.gif I was looking myself at the 5220 and 5320 but had to settle on the 4710 due to the former's tractor size and existing space constraints in garage and logging trails I needed to maneuver a tractor around.

...Bob

 

[40Kchicks]

cowboydoc

So which kind of transmission did you go with?

It looks like the 5420 mfwd is a good choice. I don't know around your area but here in Oregon the dealers don't want anything to do with a 2wd. You will have to special order one in. They all said that they just didn't sell fast enough and they would get tired of looking at them sitting on the lot. Of course cabs are really nice.

The nice thing about buying that tractor now is money has never been cheaper to borrow. I think alot of people are starting to make these type of big purchases now because of the cheap interest rates. I know thats what motivated me to get my new tractors.

Enjoy the new rig.
Eric

 

[cowboydoc]

I went with the sync shuttle Eric. As far as buying now yes the money is cheap but the biggest factor for me are the new tax breaks. I can buy $100k worth of equipment this year and take a 100% tax deduction. Since I am self-employed I pay about 55-60% in taxes. With this new deal this new tractor will really only cost me 40-45% of the actual price. Couple that with the 25% discount on the tractor from the dealer off of list and zero percent financing and it's a no brainer for me.

 

[40Kchicks]

That sounds great. The baler and mower look good too. How big is the mower? You are really going to enjoy the Cab. My friend kept his Kubota M8200 at my place this winter. It was set up just like your new rig. It was nice just to sit in.

One of these years I hope to actually have a profit to pay taxes on. I have only had the farm three years and it has been in a constant state of expensive improvement. But things are getting better.

I will have to decide if I'm going to write the new tractor off this year or stretch it out 7 years. I know I’ll need the write offs later but then I could us this money now to pay off some short term dept. Assuming I have the income this year to write it off against. Farming involves so many skills and on top of that you have to be good at understanding taxes and other financial things otherwise a person wouldn’t have to worry about. I get overwhelmed sometimes. Maybe it’s just me.

Eric

 

[cowboydoc]

Hi Eric,

The mower is 10'.

Yes all the tax info is very confusing. I'm not sure what your regular job is but you can write this off against that too if your farm is setup as a business. If you are using your regular job income to offset your negative farm income that is a definite tax deduction I hope you're taking.

When I was first getting started on my own I did this when I worked at the university and the hospital before I went into private practice. There were quite a few years I didn't pay any taxes. People don't realize it but you can tell your employer exactly how much you want taken out of your check if you think your tax bill is going to be lower than it actually is. You can also file exempt for a period of time as well.

 

[40Kchicks]

Richard

My buddy with the M8200 bought a land pride 10'mower with his tractor. The first time he used it he hit a T post in the pasture and the gear box blew apart. No teeth left were on the gears. The blade tilted and put a half moon raised crease on the deck. He was bummed out but the dealer fixed the problem except for the crease which is now rusting because he didn’t take the time to repaint the chipped paint yet. The clutch must have not been set up right. The repair is working fine.

I do work off the farm and I do use the farm loss against my other income. It works out. Business write offs help. It’s nice to have but I hear, “you can just write that off” all the time. Yes, the write off may save me 30 cents but I still spent a dollar. If I didn’t have the business I probably wouldn’t have needed to spend the dollar in the first place.

Eric

 

[cowboydoc]

Yes, the write off may save me 30 cents but I still spent a dollar

No I hear you Eric. I know you still have to pay for the other 70%. In my case I love doing it. I'd do it whether there was a tax writeoff or not. I probably wouldn't buy as nice of equipment without the write-off though. /forums/images/graemlins/blush.gif

 

[Libertine]

cowboydoc:

<font color="blue">You can also file exempt for a period of time as well. </font>

This is VERY, VERY risky advice, cowboydoc. I don't know about current IRS triggers, but I can tell you for a fact that a number of years ago filing that exempt form was a BIG RED FLAG. If someone wants to reduce withholding, there are safer ways.

<font color="blue">Yes, the write off may save me 30 cents but I still spent a dollar </font>

Maybe, but I'd sure rather give it to JD than the IRS!

JEH

 

[CountryBoy]

Sounds good to me !!! /forums/images/graemlins/shocked.gif

Way to go and good for you. /forums/images/graemlins/wink.gif

 

[cowboydoc]

Why is it risky? You are only required to pay what you believe will be your tax bill at the end of the year. Every college student I ever knew claims exempt. My one secretary is married to a farmer and she also claims exempt. She only makes about $12k a year but still there's nothing wrong with it. Now if you're doing it to avoid paying what you think your tax bill will then yes it is wrong.