Looking for some assistance in the valuation of attachments

[David P]

Last fall my wife and I closed on a piece of land that we absolutely fell in love with. Between the time we signed the purchase agreement and the closing we discovered that the former owner had planted approximately 250 blueberry bushes on the property. This got us thinking about expanding the blueberry crop with hopes that the proceeds would help to fund property taxes and our daughters' college education costs (they are still young). Since that time we have also begun collecting maply sap on the property.

So where do used equipment values come in? Well, my Aunt, who is now my favorite Aunt :thumbsup:, was moving last summer and gave to me the vast majority of her farming equipment. We are planning to donate this to our farming operation so that we may depreciate it but need to figure the approximate fair-market-value for everything. This is where I need some assistance. I will list my equipment below along with my estimate at fmv. All of the equipment is in wonderful shape for its age (all barn-stored) and appears to have been used lightly. Sorry for the long-winded thread but I thought some background may be helpful.

1981 International Hydro 84 Tractor; 1250 hours, ($8,000)

International 2250 FEL: I purchased this in Dec. for $2250; seem about right?

International Model 30 3 pt blade (6') ($350)

International Model 70 Flail Mower (6' or 7') (I have no idea on value)

Bush Hog model 266 rotary mower/cutter (6') ($300)

Troybilt Horse rototiller ($500)

3pt sprayer: looks like 4' wide w/40gallon tank ($250)

bucket scoop ($100)

3-pt hoist similar to the one in the picture, although in better shape ($75) Google Image Result for http://www.jecosupply.com/product_images/gallery/full/20081206090453.JPG

 

[bigbull338]

all of the prices you listed are more than fair for the equipment listed.

 

[David P]

Thanks, bigbull338. Any thoughts on the value of the flail mower?

 

[cjfling]

I use the used listings on tractorhouse.com to compare equipment pricing and make valuations.

 

[bigbull338]

Thanks, bigbull338. Any thoughts on the value of the flail mower?

id say $500 to $600 depending on the shape its in.

 

[David P]

I use the used listings on tractorhouse.com to compare equipment pricing and make valuations.

I tried that but get no listings...

 

[leonz]

Anything over seven years old it is of scrap value to Uncle Samuel and the Infernal Revenue Service.

SO plan on this: You cannot deduct anything until your business is established and you file a tax return TAH DAH!!!

Dont mean to burst your bubble candidly, but your better of having a road side stand for your bluberries and making pies and Jam at harvest time to sell at the stand.


Your out of pocket for the machinery is all my Uncle samuel and he cousin Infernal revenue service is interested in.

Where did you get the idea you can donate this equipment??????, not possible!

 

[jpat34721]

Where did you get the idea you can donate this equipment??????, not possible!

Here's what you do. Establish your blueberryfarm as a non-profit. Give away the majority of your crop each year to a local homeless shelter. Donate however much (tax free) you want to your non-profit, including fair market value for your inherited equipment. Remember to take the appropriate deductions against your non-farm earnings. Feel free to pay yourselves a reasonable directorate salary.

 

[David P]

Anything over seven years old it is of scrap value to Uncle Samuel and the Infernal Revenue Service.

SO plan on this: You cannot deduct anything until your business is established and you file a tax return TAH DAH!!!

Dont mean to burst your bubble candidly, but your better of having a road side stand for your bluberries and making pies and Jam at harvest time to sell at the stand.


Your out of pocket for the machinery is all my Uncle samuel and he cousin Infernal revenue service is interested in.

Where did you get the idea you can donate this equipment??????, not possible!

While I appreciate the help with tax matters, I am more interested in opinions on the values I have placed on the equipment listed in the first post. If you have input on that, I'm all ears. I don't want to get into the nuances of the tax code but if you would like to read more I would direct you to Code section 1015a.

I'm not sure what you are getting at in your point about the roadside stand and being better off by selling blueberries, pies, etc... Better off doing that than what?