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Why would you spend $100k on a tractor every 3 years to get a $30k discount on taxes?
by benmanns 12y ago
Why would you spend $100k on a tractor every 3 years to get a $30k discount on taxes?
- jchrisa 12y agoThe used market is pretty good.
- graeme 12y agoBut you need to declare the sale as capital gains. I also don't understand this argument. I use computers for my business. It makes it cheaper to get one for business than for personal use, but I'd still like the things to last as long as possible.
- Spooky23 12y agoA PC is different because there isn't much correlation between age and operating costs. With something like a server, as long as you can deploy them quickly, you actually can reduce costs by replacing them in step with the Intel tick/tock cadence.
- kalleboo 12y agoOnly for as long as the DRM key-holders allow it to be
- Trisell 12y agoBecause in the US, a tractor is considered an tool, and thus the farmers/farms get a 100% write off of the entire purchase price.
- WalterBright 12y agoA tax credit is not the same thing as a deduction (write off). A credit goes dollar-for-dollar against taxes owed. A deduction reduces the amount to which the tax percentage is applied.
- unchocked 12y agoI suspect they run the used asset (say worth $70k) through some sleight of hand with subsidiaries or leasing agents to avoid the depreciation recapture tax of selling it for its true worth. Voila, free tractor.