By Steve Swigert
Taking advantage...
Are you considering making a purchase before
the end of the year? At Great Plains Kubota, we are prepared to help you get the equipment you need to make your operation successful. This year it will be extremely important to make that decision earlier than before the very end of the year decision. With the inventory challenges across the country, making the decision to make changes needs to be done as early as possible, because you are required to take possession of the equipment before the end of the year to consider it a valid current year purchase for tax purposes. So get with your tax accountant as soon as possible to determine if a purchase at this time will benefit you from a tax standpoint. There are many other reasons for making that decision other than tax ones, the primary ones are Productivity—you need to do something faster and more efficient, for instance you are farming or taking care of cattle after working an 8 to 5 job. Or maybe you are trying to get over more acres in a shorter amount of time. Cost Avoidance Equipment fails or need major repairs. When a piece of equipment gets to a certain age or number
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of hours to becomes a higher risk for costly repairs, if that machine can be traded for a newer unit before that happens then that cost and time lost will be avoided. Also, the value of the trade-in will be significantly higher if the piece of equipment is still in working order. Reliability Agriculture is a business that is driven by the need to do things timely. From getting hay baled at the proper time to getting the crops planted when you need to, most of work on a farm or ranch needs to be done in a timely manner. To do that, producers need equipment that will be reliable to get the work done. With all of that said, there are challenges of operating in today’s environment, each operation needs to take advantage of every opportunity to help make the operation more efficient. In many cases that can be done by operating equipment that has less breakdowns, uses less fuel, and in general keeps the operation moving along. Also, each operation needs to take advantage of the tax rules, such as Section 179 if they have taxable income to deduct from. This is why it is important for each producer to meet with their accountant early this year.
GPL Winter 2021
