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Waxahachie, TX | It sounds like he doesn't really want to upgrade to a new machine??? By Equity.. do you mean the value of the machine that's already paid for?? (I'm guessing that the machine is already paid in full.. )
This is always the tuffest part.. Finding a value that everyone is happy with.. (the same for land) Ours ended up in an auction to get a known value.. other wise everyone felt they were getting the short end...
I think you'll have to come up with a known value for the machine that you have know, and maybe that will be trade in value.. And you'll probably need to make it look like a purchase, that way you can depreciate the cost of the machine... And payment is due at the end of the year to your dad.. and settle up on the hours he put on the machine.. (You are going to pay $X at the end of each year.) Mostly likely you will owe him.. Your brother just pays you, and you use that money towards your payment to your dad.. (It will be tuff paying two parties off, but really no different than making one large payment..)
Or you can buy your machine straight up and he can keep his. This keeps everyone from being upset.. but makes it harder for you...
I think you need to sit down with a CPA, and see what all of your options are...
Edited by JDGnut 2/25/2014 15:52
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Father/son and equipment transfer
