I know a tractor is supposed to get dirty and will be dirty while it’s worked, but being a fairly new tractor guy , I have wandered about the cleaning process, My uncle keeps his Kubota cleaner than my Harley, and My Harley stays clean as it should with care, but we are talkin tractors here, I think one good low pressure garden hose wash every 6 months would be fine on my Kubota, I’m not quite as picky as my uncle who actually asked me what kind of wax did I use?? I told him I ran out waxing the Harley lol,
Just a question for anyone really who knows this but I have a friend that I was with yesterday and we were in a T8.390 power shift. We were trying to find the engine brake but couldn’t find it. If some could tell me how to activate it that would be great.
Neil... is that section 179 available to small business in general, or only to farmers? Also, regarding trucks or other road vehicles, what about the 6000lb requirement I have heard of?
Section 179 or the “79 Rule” Applies to all farm and business titles. (Partners, LLC, Corp., Etc.) This is at the federal level. I’m unaware of any weight restriction. I know some will value a vehicle by weight, but you cannot value a vehicle by weight for tax purposes. The 6k lb requirement could be something that is at the state level. I’d advise consulting Your local accountant or CPA for advise and guidelines, if your state does require there to be a 6k lbs requirement. I’m studying to be an accountant, and just wrapped up my tax course for the year. All my information should be up to date for the 2019 tax season.
It's... complicated. The following is not tax advice. People will quote the 6000 pound number, and it's sort of true, but there are exceptions for vehicles that are poorly suited for personal use - cargo vans are the textbook case, as are taxis, and so they qualify. Longbed pickups qualify, but bed lengths under 6 feet don't, unless the shortbed truck is over 6000 pounds - and this can happen with Crew Cabs. It's also why you could buy an H2 with something that legally was a truck bed. Note that with motor vehicles there are 179 limits and there's still depreciation to deal with above $25K, *unless* the vehicle is over 14000 lbs GVWR. Watch out, though, because insurance suddenly gets a lot more expensive above 14000 pounds, so try the numbers both ways and see. You'll see some dually pickups with options to land on either side of 14K and wonder who would buy a payload option that only adds 100 pounds - and that's why!
any business!!!all it is is real fast depreciation...but to save 3000 bux on your taxes ,you wouldnt have to ACTULLY buy something for 10.000 bux!,,,then when you sell that truck,the whole amount will be taxed !
KEEP in mind....dont be buying what you dont need!!! JUst to save taxes...for instance,you have a 400,000 dollar adjusted ..you owe lots of taxes...so you buy a 120,00 dollar skidsteer...you pay cash....you save the taxes on that 120k!...about 30k...BUT YOU HAD TO WRITE A 120K CHECK TO DO IT!...I would rather pay the tax on the 120k and have 90k left IN THE BANK ,,,to buy a non-depreciating item someday!!!I didnt really need another skidsteer....i know guys buying new trailers,dozers,trucks..all taxable at the property tax level too....JUST TO SAVE TAXES!!!
@@metalrooves3651 Not that I totally disagree that buying equipment you don't need is not wise, but from a business cash flow perspective Sect 529 allows you to finance a piece of equipment, pay for it over 4-5-6 years, and take all depreciation and tax benefit in year 1. On a cash flow basis you will actually pay less money out of pocket in year 1. The scenario your describing above is not how it plays out most of the time.
I found out about it last year when I started reading the tax code to better understand things. Basically, if you are a farmer (or business owner in general?) there are certain purchases that get written off as depreciations. For example, if you buy a truck that weighs over 6,000lbs (a dually), the default rate of depreciated is 7 years. Meaning, if the truck cost you $50,000, and the tax rate is 24%, each year for the next 7 years you'd get a tax credit of ($50,000*0.24)/7=$1714. Some time back the government introduced Section 179 to get people to buy more stuff basically. Now you have the OPTION of taking the lump some. Using my previous example that means you'd get a ($50,000*0.24)=$12,000 tax credit this year, but then would not be able to write it off ever again. On paper, this is good for if you have an extra good year of profits and need to drop your taxes down. You can also do some money manipulation (for lack of a better phrase). Meaning, if you can't afford to drop tens of thousands of dollars on new equipment and you tend to look at things by their monthly cost, you could say, buy a tractor, Section 179 it, use that money to pay off your car payment, which would allow for a bigger monthly payment for the equipment you want.
“Very willing to sell you a million bucks worth of equipment”
-Neil 2019.
To cya you should put in a statement about contact your accountant. Awesome as always!!
STFU!
I know a tractor is supposed to get dirty and will be dirty while it’s worked, but being a fairly new tractor guy , I have wandered about the cleaning process, My uncle keeps his Kubota cleaner than my Harley, and My Harley stays clean as it should with care, but we are talkin tractors here, I think one good low pressure garden hose wash every 6 months would be fine on my Kubota, I’m not quite as picky as my uncle who actually asked me what kind of wax did I use?? I told him I ran out waxing the Harley lol,
I want my tractor set up like the one in the click bait! On all four wheels of course lol can you guys show that tractor in action sometime? Thanks!
My step dad used to do this all the time
A lot of good are these, with no Oil & Gas to run them!
Neil can you do a detail video on asv vt70 no one has one thanks
Just a question for anyone really who knows this but I have a friend that I was with yesterday and we were in a T8.390 power shift. We were trying to find the engine brake but couldn’t find it. If some could tell me how to activate it that would be great.
Sure it has it? Its an option.
No I am not sure to be honest if it has it isn’t it just a pedal on the floor to use it?
It probably doesn’t have it though
@@andrewpeterson5977 it is a pedal
Neil... is that section 179 available to small business in general, or only to farmers? Also, regarding trucks or other road vehicles, what about the 6000lb requirement I have heard of?
Any business. I'm not an accountant obviously, pretty well everything we sell can be run under that rule.
Section 179 or the “79 Rule” Applies to all farm and business titles. (Partners, LLC, Corp., Etc.) This is at the federal level. I’m unaware of any weight restriction. I know some will value a vehicle by weight, but you cannot value a vehicle by weight for tax purposes. The 6k lb requirement could be something that is at the state level. I’d advise consulting Your local accountant or CPA for advise and guidelines, if your state does require there to be a 6k lbs requirement. I’m studying to be an accountant, and just wrapped up my tax course for the year. All my information should be up to date for the 2019 tax season.
It's... complicated. The following is not tax advice. People will quote the 6000 pound number, and it's sort of true, but there are exceptions for vehicles that are poorly suited for personal use - cargo vans are the textbook case, as are taxis, and so they qualify. Longbed pickups qualify, but bed lengths under 6 feet don't, unless the shortbed truck is over 6000 pounds - and this can happen with Crew Cabs. It's also why you could buy an H2 with something that legally was a truck bed. Note that with motor vehicles there are 179 limits and there's still depreciation to deal with above $25K, *unless* the vehicle is over 14000 lbs GVWR. Watch out, though, because insurance suddenly gets a lot more expensive above 14000 pounds, so try the numbers both ways and see. You'll see some dually pickups with options to land on either side of 14K and wonder who would buy a payload option that only adds 100 pounds - and that's why!
any business!!!all it is is real fast depreciation...but to save 3000 bux on your taxes ,you wouldnt have to ACTULLY buy something for 10.000 bux!,,,then when you sell that truck,the whole amount will be taxed !
KEEP in mind....dont be buying what you dont need!!! JUst to save taxes...for instance,you have a 400,000 dollar adjusted ..you owe lots of taxes...so you buy a 120,00 dollar skidsteer...you pay cash....you save the taxes on that 120k!...about 30k...BUT YOU HAD TO WRITE A 120K CHECK TO DO IT!...I would rather pay the tax on the 120k and have 90k left IN THE BANK ,,,to buy a non-depreciating item someday!!!I didnt really need another skidsteer....i know guys buying new trailers,dozers,trucks..all taxable at the property tax level too....JUST TO SAVE TAXES!!!
often the machine is financed so your not writing a check.
what difference does that make?my point remains the same.Buying what yiu dont need to save money on your taxes is stupid@@MessicksEquip
@@metalrooves3651 Not that I totally disagree that buying equipment you don't need is not wise, but from a business cash flow perspective Sect 529 allows you to finance a piece of equipment, pay for it over 4-5-6 years, and take all depreciation and tax benefit in year 1. On a cash flow basis you will actually pay less money out of pocket in year 1. The scenario your describing above is not how it plays out most of the time.
Anybody find it mildly amusing that "Three Minute Thursday" is rarely three minutes long? This is about as close as I've seen.
I love your videos, but as a non-farmer I am just as lost after this video as I was before watching it.
I found out about it last year when I started reading the tax code to better understand things. Basically, if you are a farmer (or business owner in general?) there are certain purchases that get written off as depreciations. For example, if you buy a truck that weighs over 6,000lbs (a dually), the default rate of depreciated is 7 years. Meaning, if the truck cost you $50,000, and the tax rate is 24%, each year for the next 7 years you'd get a tax credit of ($50,000*0.24)/7=$1714. Some time back the government introduced Section 179 to get people to buy more stuff basically. Now you have the OPTION of taking the lump some. Using my previous example that means you'd get a ($50,000*0.24)=$12,000 tax credit this year, but then would not be able to write it off ever again. On paper, this is good for if you have an extra good year of profits and need to drop your taxes down. You can also do some money manipulation (for lack of a better phrase). Meaning, if you can't afford to drop tens of thousands of dollars on new equipment and you tend to look at things by their monthly cost, you could say, buy a tractor, Section 179 it, use that money to pay off your car payment, which would allow for a bigger monthly payment for the equipment you want.
you were on track till you brought a car into your explanation..I DOUBT IF THE GUY YOURE REPLYING TOO UNDERSTANDS IT ANY BETTER NOW...@@Eric998765