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| It's only fair if you two agree that it's fair. Maybe make it fair by adjusting the custom rate charge. Perhaps he isn't ready to not own his own combine and to rely on someone else (you) for custom work. If that's the case trade his combine on a "new" one that you both own at ownership % that match up with acres. Ante up on costs for actual acres at the end of the year if they differ from ownership%. His contribution would be from his combine plus cash/payments if needed and yours would be cash/payments. If he goes the custom rate route he'd be trading depreciation, repairs, and operating expenses for custom work charges. I don't do much custom work but have read before that custom rates are often less than the costs of actually owning your own machine. The benefits to owning your own machine are doing the work when and how you want. | |
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Father/son and equipment transfer
