Should you trade in your tractor when you buy a new one.

[Torvy]

Here in the US, those types of taxes are handled by individual states.

 

[Rockbadchild]

Here in the US, those types of taxes are handled by individual states.

ha i see, thanks for the correction. There goes my second point lol … I often forget how different our country are, it’s not the first time it happens and probably not the last but at least i get corrected and i learn something.

 

[mcfarmall]

No big deal just tell the buyer that you and he will complete the transaction in the lobby of your bank. The personnel will gladly assist in counting and verifying the authenticity of the currency involved.

 

[jyoutz]

Taxes on your tractor? What kind of cruelty is that? As for me, I'm staying in Texas...apologies to Davy Crockett.

I talked to a dealer in Amarillo last fall and was going to buy a tractor but the sales tax was too high. I bought in Colorado and paid no sales tax because I’m out of state. Yes they charge sales taxes on tractors in Texas.

 

[4570Man]

Taxes on your tractor? What kind of cruelty is that? As for me, I'm staying in Texas...apologies to Davy Crockett.

It’s a raw deal but unless you have a farm use tax exempt card, a non profit status tax exempt card, or live in one of the few states with no sales tax you’re going to have to pay sales tax on a tractor.

 

[Torvy]

It’s a raw deal but unless you have a farm use tax exempt card, a non profit status tax exempt card, or live in one of the few states with no sales tax you’re going to have to pay sales tax on a tractor.

Truth. We qualify as AG use exempt. I would suggest to many who do not, that it may be beneficial to pursue non-profit status. Set up your place as a non-profit LLC. Donate produce to a food pantry. Give tours to church groups or whatever. The LLC will protect your personal assets and you can keep the equipment tax exempt. Should be pretty easy to keep an ag business non-profit. Even if you are not trying to save on taxes, being set up as an LLC may be a wise choice.

 

[workinonit]

I don't pay sales tax on any equipment I buy from the dealership. Besides that, in SC we have a sales tax ceiling on vehicles.

I traded my tractor because they gave me about $1000 less than what I could get for it, which is what they sold it for the day they picked it up from my farm and took it to the dealership. It just wasn't worth the hassle for me.

 

[Hay Dude]

With all the scams going on out there, unless someone brings in cash to buy your tractor, its not worth selling it. But for anyone to walk around with 20-30k in their pocket to a strange setting to do the transaction is getting harder, to say nothing if your the one accepting and counting it out in front of people you may not know. With prices going up on used tractors, is it worth it to trade in your old one at a dealer for a new tractor?

I think the scams are a bit over exaggerated by internet hysterics. I have done several transactions (probably 20) over $10,000 in the last 20 years and never had a problem-except once. Best to have funds wired after buyer does his/hers/whatever’s inspection. If they cant do an inspection, have them bring a cashiers check and call their bank when they arrive. Call bank manager and verify they wrote a bank check to you for $XX,XXX dollars. They are usually very helpful.

When working with cash, try doing the transaction in a somewhat public setting-shopping center parking lots work good-plenty of space to load/unload and people nearby. Make the buyer bringing the cash count it out on your tailgate. Bring a friend along that likes to throw hands or lastly, wear your sidearm. I have done my transactions in very remote places with just a sidearm or one of the gorillas that works for me and never had a problem-except once. One guy got frisky and I got him calmed down real fast. If its in your driveway, make a comment that your transaction is being recorded on camera. Anyone honest wont care.

Trade-ins are ok, but know the dealer is going to give you probably 20%+ less than a private sale. Some of this might be offset if you have a high state sales tax.

 

[skipmarcy]

I've always been told by my bank(s) that a cashier's check has to clear just like a personal or business check and that a stop payment can be issued on it as well. That's why when I sold a lot on Gunbroker I accepted USPS money orders only. I've also done quite a few large cash transactions at home here out in the country without problems - just keep "insurance" handy in your pocket with that much cash on the table.

 

[Hay Dude]

I've always been told by my bank(s) that a cashier's check has to clear just like a personal or business check and that a stop payment can be issued on it as well. That's why when I sold a lot on Gunbroker I accepted USPS money orders only.

If someone did that, there’d probably be a grand theft charge and jail time For the buyer/stealer.
Then if the buyer agrees to buy your property, leave it at a local dealer and tell the buyer once his/her funds clear, they can pick it up.
Where theres a will, theres a way.