B2601 New vs used

/ B2601 New vs used
  • Thread Starter
#41  
It will not be used in the production of food, so the tax exemption does not apply
 
/ B2601 New vs used #43  
Here in Ohio chickens are considered "livestock" and we were able to register our property as a homestead. That puts us in an agricultural bracket and we get several benefits, including tax breaks. My better half could explain it better as she keeps up on it all and we have a close CPA that is tied in with her business that knows how all that works in depth.

When we bought our machine there was a form we filled out - a "Sales and Use Tax Unit Exemption Certificate". I didn't know it at the time, but that gave us a farm account at the dealer across the board so everything we need runs through that - both preferred pricing and tax exempt on parts and service.

Do some digging on your end. Talk to the dealer and a tax pro that works with agricultural entities. See what there is in your state/county. You may also check to see if there is an FSA office around. They would certainly be worth a shot to contact. They help farmers financially with various categories of loans available to them. I'm sure they would have some input on qualifications - not that you'd be after a loan through them, per se, but they may be able to offer some assistance with how to navigate through the detail on what would put you in a particular category.

I will say, we had a lot of options on machines. Yea, there are both "nicer" tractors out there in the class we bought, and there are "lower prices". If we looked hard enough I'm sure we could have found a suitable machine for a whole lot less.

However, from my experience in the large Ag equipment world, I didn't want to go red, blue, or green. We had a lot of people recommend TYM and Kubota, more so Kubota. And we have a dealer very close. So when you wrap the "whole package" together - the dealer resource (consider their parts network and their presence around the country - they have a very large strong hold in the sub-200hp markets, I would say even stronger in the sub-100hp markets) we get through Kubota and that we can drive down the street for what ever we need is huge. That may not be the case for everyone everywhere, but it is a very nice overall package I feel more comfortable with. Time will tell when the going gets tough once the growing season hits. I presume, though, the dealer here doesn't have too many guys running planters and side dressing much acreage for weeks on end.
 

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