Start business to buy tractor?

[DavesTractor]

frog, if your tax bracket is indeed 35% and your taxable income is as high as randy41 indicates it must be to be in the 35% tax bracket why on earth would you be looking to work a few hours a week at $50 to $100 an hour???

He probably got into that tax bracket by working hard and investing well. I suspect this would be fun money and it would also help justify the purchase.

 

[Hard]

He probably got into that tax bracket by working hard and investing well. I suspect this would be fun money and it would also help justify the purchase.

If he has worked hard to make that kind of money to be in the 35% tax bracket then he doesn't have to justify the purchase of a little tractor. He has already done the hard work...

 

[k54frog]

One never knows, but I quote my tax bracket including fed AND state ... we have a 9.3% top marginal here in Kalifornia ...

yes ~28%fed + ~9.3%state...OK so the math is a little fuzzy...that makes ~37.3%

As far as personal use... any use around my own house is necessary training and experience needed to do a good job for my customers.

ken:

 

[k54frog]

frog, if your tax bracket is indeed 35% and your taxable income is as high as randy41 indicates it must be to be in the 35% tax bracket why on earth would you be looking to work a few hours a week at $50 to $100 an hour???

Consider it a pleasant diversion for me ... someone else might consider it work.
I get lots of satisfaction from a job well done.
I figure if the IRS sees a clear profit, albeit somewhat small, with some taxes paid, they'll probably leave it alone.

 

[ovrszd]

This post is very amusing, hope it keeps going for a while.

I'm just a dumb Missouri Hick. I like to run Ag tractors, so I'm thinking if you guys can work out the details, I'll go buy a $200,000 Ag tractor and hire it out a few hours a week just so I can justify owning one!!! I've always wanted a 300 HP, 4x4, big-a**ed John Deere!!!

 

[Croomrider]

yes ~28%fed + ~9.3%state...OK so the math is a little fuzzy...that makes ~37.3%

OK, so that means a taxable income of 72,000 would put him in the 28% Fed tax bracket. That should change the tone of some of the comments I would think. Living in Kalifornia that's almost poverty level isn't it. HaHa!

CR

 

[k54frog]

yes ~28%fed + ~9.3%state...OK so the math is a little fuzzy...that makes ~37.3%

OK, so that means a taxable income of 72,000 would put him in the 28% Fed tax bracket. That should change the tone of some of the comments I would think. Living in Kalifornia that's almost poverty level isn't it. HaHa!

CR

Croomrider,
Welcome to tbn from one newbie to another,
You're pretty close on both counts...I'm hoping to make one of my major goals of being broke -'net worth=0'-(a temporary state as opposed to being poor[a mind set]) in the near future. In my case it means big progress.
Note to all...stay away from debt if at all possible...it sucks!

I did find out one small detail regarding Section 179 deduction/expenses and that is you can only expense the amount of the purchase up to the amount of income earned by the business, ie I can't take a business loss due to expensing a large item...I'd have to depreciate it over time. That's more hassle than I need right now.

Oh well, it was worth looking into.

Hey OVRSZD, sorry to get your hopes up regarding your "300 HP, 4x4, big-a**ed John Deere!!!"

I'll let y'all know what I get when I actually get it. And I'll post a picture too!!

-kenny-

 

[ovrszd]

Croomrider,
Welcome to tbn from one newbie to another,
You're pretty close on both counts...I'm hoping to make one of my major goals of being broke -'net worth=0'-(a temporary state as opposed to being poor[a mind set]) in the near future. In my case it means big progress.
Note to all...stay away from debt if at all possible...it sucks!

I did find out one small detail regarding Section 179 deduction/expenses and that is you can only expense the amount of the purchase up to the amount of income earned by the business, ie I can't take a business loss due to expensing a large item...I'd have to depreciate it over time. That's more hassle than I need right now.

Oh well, it was worth looking into.

Hey OVRSZD, sorry to get your hopes up regarding your "300 HP, 4x4, big-a**ed John Deere!!!"

I'll let y'all know what I get when I actually get it. And I'll post a picture too!!

-kenny-

Dang it, another dream shattered!!!

 

[k54frog]

Dang it, another dream shattered!!!

Keep on dreamin friend, It'll help keep ya going!
Dream enough && someday...

-frogger-

 

[JHTFarmer]

While on the topic of "starting a business to buy a tractor"...


One and a half years ago my wife and I bought an adjoing property.
It was approx 24 acres and catogorized as a farm. Our CPA recommended that we form an LLC to purchase the property. We did this and six months later hurricane Rita rolled through.

Our residential property is 2.5 acres (not huge). The quotes from hurricane "recovery" contractors ranged from $9000 - $12,000 just to clear a dozen or so trees from the property. I put a bid in from the farm to clear the trees for $10,000 and our insurer paid 100%. I did all the work myself with the tractor the farm purchased in part with this money.

I'm hoping for another hurricane so I can make $20,000/day like these
fine people who came down and "helped" my community