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Farmers often take 100% depreciation on a new purchase. So for tax purposes they lost 150k and do not have an asset worth 150k sitting around. Now if they sel
by mohaine 9y ago
Farmers often take 100% depreciation on a new purchase. So for tax purposes they lost 150k and do not have an asset worth 150k sitting around.
Now if they sell the tractor they have to pay taxes on the full sale price as profit since it was previously worth zero.
- avs733 9y agoWhich, because of their mindset about taxes, hurts the resale market for tractors and allows manufacturers to overprice new sales.