Are tractors and equipment a good investment right now?

[2manyrocks]

I don't expect to see mutual funds begin buying tractors for their portfolios.

Whether a tractor is a good investment depends on how much work it will do for you and what benefit comes from that work relative to the cost. First tractor I bought was a Yanmar 226d I used to keep a steep driveway graded and do other minor work that it can easily accomplish in a few minutes. I believe I've gotten my money's worth over the years.

The problem lately has been that rapid devaluation of the dollar has made new equipment purchases expensive.

 

[two_bit_score]

jyoutz already nailed it, that they're depreciating assets, even if that depreciation comes from inflation alone.

Sometimes you can depreciate it all off in one year.

 

[riptides]

My tractor is a back saver, not an investment for financial gain. Although they have probably "saved" me monies over the years.

That said, I am writing off depreciation as you read this. LOL.

 

[DK35vince]

Whenever I hear this, not just WRT tractors, but all things... I think that people forget how little money they were making, and how little free cash they had to spare on such things, in reminiscing about their past.

I know we were doing better financially a few ago than we are now.
Fact..
Inflation has FAR exceeded my slight pay increase

 

[cathy liebchen]

A tractor is a tool. Our BRK-B is an investment

 

[koshari]

I don't expect to see mutual funds begin buying tractors for their portfolios.

Whether a tractor is a good investment depends on how much work it will do for you and what benefit comes from that work relative to the cost. First tractor I bought was a Yanmar 226d I used to keep a steep driveway graded and do other minor work that it can easily accomplish in a few minutes. I believe I've gotten my money's worth over the years.

The problem lately has been that rapid devaluation of the dollar has made new equipment purchases expensive.

which conversely makes used equipment like your Yanmar more expensive.

 

[CloverKnollFarms]

Over time, my tractor will pay for itself. It is a durable good, and if cared for, will never be worth $0. If my use outpaces depreciation, Im ahead. The longer I own it, the better my financial situation will be. Last year alone I spent about 10 hours tilling fields that are used for honey production. I was quoted thousands to break this ground. Mind you, on his timeline, not mine necessarily.

 

[two_bit_score]

Over time, my tractor will pay for itself. It is a durable good, and if cared for, will never be worth $0. If my use outpaces depreciation, Im ahead. The longer I own it, the better my financial situation will be. Last year alone I spent about 10 hours tilling fields that are used for honey production. I was quoted thousands to break this ground. Mind you, on his timeline, not mine necessarily.

Don't you use Sect 179 depreciation on most of your equipment?

Depreciation expense helps business owners keep more money | Internal Revenue Service

 

[CloverKnollFarms]

Don't you use Sect 179 depreciation on most of your equipment?

Depreciation expense helps business owners keep more money | Internal Revenue Service

Not a business. I will be starting a business in the coming 12-24 months, which will then allow me to use 179 to depreciate my new equipment moving forward.

 

[two_bit_score]

Not a business. I will be starting a business in the coming 12-24 months, which will then allow me to use 179 to depreciate my new equipment moving forward.

Good luck with your business!