FIL heated his 800 sqft cabin with wood in a little woodstove right in the middle. He got to be near 80 and decided he was tired of hauling in wood (and unplugging the crappy chimney 4 or 5 times a season). So adding the central heat/air AND upgrading the electric service is going to run about, $6,000.
Save $$$ - Heat with Wood
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I've been burning wood for 40 years now and since my tractor is now ten years old, I was thinking of the $$$$$ I've dumped into burning wood just over the last ten years.
Start with, I need 7 cord/year, so I spend 20k for tractor with FEL and PTO winch, $1000.00 for 2 chainsaws, $600.00 for tire chains, the woodsplitter bought in 92 for $1,200.00. With just these 4 needed things, with todays prices probably would run around 25k.
So is it worth it, I dont know, I know I still like going down the woods with my tractor on a 25ｰ sunshiny January day when the ground is all covered with snow, but I know I wouldn't like it if doing the same thing with horses, bucksaw and a axe.
Then the cost of maintenance, tires, and oil changes....... but then again for me it's hard to figure what the actual cost is for 7 cord/year, because the tractor is used a lot for other thing like snow removal, landscaping, and the massive work that was done hauling out logs for lumber in the past 5 years, a house and one good size garage.
Start with, I need 7 cord/year, so I spend 20k for tractor with FEL and PTO winch, $1000.00 for 2 chainsaws, $600.00 for tire chains, the woodsplitter bought in 92 for $1,200.00. With just these 4 needed things, with todays prices probably would run around 25k.
So is it worth it, I dont know, I know I still like going down the woods with my tractor on a 25ｰ sunshiny January day when the ground is all covered with snow, but I know I wouldn't like it if doing the same thing with horses, bucksaw and a axe.
Then the cost of maintenance, tires, and oil changes....... but then again for me it's hard to figure what the actual cost is for 7 cord/year, because the tractor is used a lot for other thing like snow removal, landscaping, and the massive work that was done hauling out logs for lumber in the past 5 years, a house and one good size garage.
4570Man
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If the entire idea was to split enough wood to heat my house with and I was starting with nothing I'd have a saw, splitter, and a trailer assuming I didn't already have a pickup. That's $2000 or less. Add another $500 for safety gear and other tools that'll make your life easier. Anyone figuring up considerably higher cost either enjoys wasting money or is using their equipment for other tasks. And if I decide I don't like splitting wood anymore the imaginary saw, splitter, and trailer can be sold to recoup some of it. And for those of you that think hours on your tractor are costing big bucks. I used my L3240 for 700 hours and sold it for approximately the same price I paid for it. That brought my operating cost to less than $5 an hour.
TnAndy
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Another issued often missed when you produce and use anything from your own land, be that firewood, food, etc, are the taxes you AVOID in doing so.
To earn the money required to purchase fuel, or food, or whatever, also requires you pay an often hefty tax on the income earned to have after tax dollars left to buy the whatever......plus you often get hit with a sales tax on the purchase even using after tax dollars !
I use this analogy with my sawmill lumber often:
Say I buy a 2x4 stud in town (crappy things that they are), and it costs $2.50. The real cost of it is (in my case) is close to $3.90. My effective, self employed federal income tax/SS rate is about 35%. That means I have to earn $3.90 to have $2.50 left over to buy that stud......plus 9.75% in sales tax. (no income tax in TN). So each 2x4 I produce and use off my mill is actually worth over 4 dollars.
When you start factoring in the taxes you don't pay on home produced stuff, it can be a significant factor.
To earn the money required to purchase fuel, or food, or whatever, also requires you pay an often hefty tax on the income earned to have after tax dollars left to buy the whatever......plus you often get hit with a sales tax on the purchase even using after tax dollars !
I use this analogy with my sawmill lumber often:
Say I buy a 2x4 stud in town (crappy things that they are), and it costs $2.50. The real cost of it is (in my case) is close to $3.90. My effective, self employed federal income tax/SS rate is about 35%. That means I have to earn $3.90 to have $2.50 left over to buy that stud......plus 9.75% in sales tax. (no income tax in TN). So each 2x4 I produce and use off my mill is actually worth over 4 dollars.
When you start factoring in the taxes you don't pay on home produced stuff, it can be a significant factor.
LD1
Epic Contributor
Taxes have no effect on 99% of people who cut, burn, or sell firewood.
Dont know anyone that pays taxes, or charges people taxes for selling.
As far as uncle sam come year end on that income.....I know most dont even mess with it. Say someone sells 10 cord a year for $1500. With so many things to write off, truck mileage, fuel, equipment, half a cell phone bill, etc etc......it would quickly show on paper as a loss or little to no profit. So since not really a net change either way on taxes....most just keep it simple and off-book.
So no point in complicating things with taxes or other fancy calculations to justify stuff.
Its as simple as this......my house needs a cord a month to keep warm. My house needs $160 paid to (pick your utility/fuel source) to keep warm.
So there is two options....Cut that cord and burn it. Or cut that cord, trade it for cash, and buy the heat of your choosing. Taxes dont come into play.
Dont know anyone that pays taxes, or charges people taxes for selling.
As far as uncle sam come year end on that income.....I know most dont even mess with it. Say someone sells 10 cord a year for $1500. With so many things to write off, truck mileage, fuel, equipment, half a cell phone bill, etc etc......it would quickly show on paper as a loss or little to no profit. So since not really a net change either way on taxes....most just keep it simple and off-book.
So no point in complicating things with taxes or other fancy calculations to justify stuff.
Its as simple as this......my house needs a cord a month to keep warm. My house needs $160 paid to (pick your utility/fuel source) to keep warm.
So there is two options....Cut that cord and burn it. Or cut that cord, trade it for cash, and buy the heat of your choosing. Taxes dont come into play.
TnAndy
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LD1
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Nope.
You implied that someone paying for wood, is actually paying more than face value for it (since they are buying with money that was taxed already).
And implied that cutting your own wood, would save more than the value of said wood because one would have to pay taxes on the income if they were to sell it.
IE: you implied that buying wood for $160 would actually cost someone closer to $200 because that $160 was taxed. And if one were to sell wood for $160 they would only net $120 after they pay taxes.
I just said this simply isnt true. Because most dont claim firewood income on taxes, so selling for $160, is $160 in your pocket, NOT $120 as you think.
And the $160 that they buy wood for, that is taxed money.........well its the same as paying for electric, propane, natural gas, etc. You are paying for it with taxed money.
So your claim is total bogus.
Quebecguy
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LD1
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Enlighten us all.
Taxes have no bearing.
You can choose to burn wood that has $160 cash value
Or you can choose to buy $160 worth of heat in the form of electric, propane, nat gas, etc.
Just how do taxes come into play?
In my case, I can choose to burn $160 worth of wood and in doing so, that pumps 12 Million BTU's of heat into my house
Or I can sell that same wood for $160 cash, hand that to my electric company, and in turn they sell me 1333 Kwh of electric. And that 1333 Kwh of power will run my geothermal long enough to put about 16-18 Million BTU's of heat in my house.
So where do taxes factor into that equation? You are trying to over-complicate things in hopes that the facts will get lost in the BS.
Some people like the heat....great. Some people are already established with a wood burning setup and cannot justify the large up-front cost to convert.....great. Some people just like being self sufficient and not depend on power or some other utility.....great. All good reasons to burn wood. But trying to justify it as a cost savings because of taxes.....100% pure BS