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Black Hawk County, IA | Decide on a depreciation number for each tractor. Whatever % you or your tax man use. Let’s say 5%. If your current tractor is worth $50,000, your depreciation is $2,500/year. If you put 250 hr/year on it, your depreciation cost is $10/hr. If the next one is worth $25,000, its cost on those same 250 hrs would be $5/hr. You then decide how the workload is split up. If half and half, then you would have 125 hrs X $10, and 125 hrs at $5. Savings from depreciation alone are $675/year. Your numbers will vary, I just pulled value’s out of the air. We used to rent 200 hp tractors out for $35/hr. for light duty jobs. | |
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Tractor value per 100 hours
