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North Dakota | There are a lot of factors that apply and everyone’s operation is different in some or many respects. Just made a major equipment purchase which is first one since 2011. Reasons:
1. What I have been looking for became available.
2. Dealer worked with me on selling price by coming down some and with some more prodding threw in a 3 year/2000 hour warranty. Also gave what I thought was fair price on trade.
3. Was able to put a large chunk down lessening what I have for final payoff.
4. Secured a fixed loan on remaining equipment cost 1.5% below manufacturers offered interest rate.
5. Replaced a piece of equipment that was becoming old enough to cause reliability concerns(15 years old).
6. Able to use remaining available cash flow at this time to purchase all of seed inputs for next years crop to bring taxes down to last years level.
7. Will add 100% of large machinery purchase to add to depreciation schedule. My depreciation schedule had become anemic with only one item that hadn’t been depreciated out yet. Also I never use a fast write off for equipment that has payments.
My MO is to try to use various methods (mostly crop input but sometimes machinery purchase(rare) to keep taxes at an even manageable and known level year after year. Meet with accountant once or twice in pretax appointment(s) to nail down the exact plan of attack. Not stating this is the way to do things but has worked for me for over 30 years. | |
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