Life of handhelds

[weed wacker 2]

Our handhelds don't even last a year. We have tried them all, Shindaiwas, Stihl, and Echos. These are all trimmers of course.

[mbrew]

Originally Posted by Richard Martin

Purchases under $250,000 can be expensed. Take it all at once in the year you purchase it. That law changes soon to only $20k but you'll still be good with handhelds.

How long they last has an awful, awful lot to do with how much work you do, brand and class of equipment (homeowner or professional etc), fuel, oil, the enviroment they're used in. There's just too many variables. A wild guess would be anywhere from 2 seasons to 10. I've seen literally thousands of posts about lifespan of handheld equipment and it varies wildly.

Its been a number of years since I've filed a business tax return and I didn't know this was available. I just did some reading and found the provisions under section 179 in the tax code. That's really a pretty big deal because it took away one of the two major benefits of leasing or financing equipment and really helps the guy that pays cash for his equipment. Thanks for posting that.

And for the record, I figure three years for replacement costs on all of my handhelds. I'd expect more out of some of them, but that's a nice conservative number that ensur's I'll have money for replacement available.

I haven't read through the whole thing yet, but I see if I use my current Z for trade in on z new z only the amount I paid in cash is deductible. I assume that if I just sell my current Z, I still have to recapture that value some how. Do you know if that's the case?

[JCLawn and more]

Originally Posted by BrunoT

It of course depends on how much you use them. A solo operator will use one less than a 2 man crew, where worker #2 is using them 100% of the time.

I consider them quasi-disposable and not worth wasting too much time fixing and maintaining. 2-3 years for a string trimmer, up to 5 years for a BP blower, over 5 for a hedge trimmer (varies widely depending on use).

I roughly figure $100/year of depreciation for any type of 2 cycle handheld stuff. Maybe $1,000/yr for a quality ZTR, and $500 for a gear drive wb (used less) . Toss in trailer, hand tools, etc, and you might need $2,000/year saved for replacements. But all this can vary based on specifics.

Also, buy power, as a more powerful machine may last longer and certainly makes the work go faster. I have bought 3 less-than-top-of-the-line blowers over the years and regret them all. They are just not as capable. I use my latest one just for grass clippings in mowing season and switch to a big boy for leaf season. $200 more on a blower is $40/year, hardly worth worrying about.

That has to be the best figure I have heard. I think that is a good base to figure off of.

[topsites]

Originally Posted by GrayM

I'm working on my business plan right now, and am trying to workout what I should figure for the depreciation of my hand helds (backpack blower, trimmers, edgers etc.). How many seasons can I expect them to last if I buy quality, and take care of them? Thanks for your time.

Well...
I've been in this business for nine years, not saying my advice is the best but here's been my experience:

1. I take the IRS standard deduction per year and be done with it, otherwise I only cheat myself and it comes back later,
so either way it is what it is and I just take whatever it gives me by default, that's the easiest way.

2. Apparently a hand held lasts about 2-3 years full time use if treated half decent, 3 years...
After that things start to break and it becomes costly to maintain although in ways still cheaper than buying new.
With repairs and all, the case starts to cracking, a spark plug hole strips, perhaps the muffler falls off (I'm not joking),
in short the thing starts to falling apart, the choices are but so many...

All depends exactly how many hours, what kind of use, and so on, of course.
Which, I have an Echo trimmer that's 8...
But again, it wasn't used every year, yadda yadda yadda
So I say 2-3, 4 maybe 5 years full time all out use.

[topsites]

Oh, as for standard depreciation deductions...

I don't remember what it is, you'll have to look it up but I believe it's 10% for 7 years or some such thing
(and like 30% for the first year) again I don't recall exact but it is defined by the IRS.

[ucfbrian]

Originally Posted by GrayM

Richard, I figured that might be the answer...just thought I would check. I'm working with $10,000 total for starting the business...that's my budget for everything. Insurance, marketing, equipment (except I already own a truck). I plan on starting with a 36" wb, 21" push, and one set off handhelds to start. The 21" could be a backup to the 36" in a pinch. I don't have the cash to purchase 2 of all handhelds at first, but I plan on buying backups as soon as cash is coming in.

Jay, are you referring to Andy Taylor as in the Andy Griffith, Andy Taylor? (I'm sure I could probably have worded that a little better...)

One thing to check into is fleet programs. Husqvarna has a new fleet program where zero turns, walk behind mower, and handheld equipment all count towards the point total. Commercial zeros are 4 points, wide area walk behinds are 3 points, and handhelds are 1 point each. You need 12 points and you get 20% off of list price. Starting up a business and needing everything, it is not hard to get the 12 points you need to get the discount.

[Richard Martin]

Originally Posted by mbrew

I haven't read through the whole thing yet, but I see if I use my current Z for trade in on z new z only the amount I paid in cash is deductible. I assume that if I just sell my current Z, I still have to recapture that value some how. Do you know if that's the case?

Yes. It's called recovery. From IRS pub. 334 (2009)

"Recovery of items previously deducted. If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ."

http://www.irs.gov/publications/p334...blink100025222

[Richard Martin]

Originally Posted by topsites

Well...
I've been in this business for nine years, not saying my advice is the best but here's been my experience:

1. I take the IRS standard deduction per year and be done with it, otherwise I only cheat myself and it comes back later,
so either way it is what it is and I just take whatever it gives me by default, that's the easiest way.

Yeah, the easiest way to pay wayyyy too much in taxes. This has to be some of the poorest advice you have ever given here. Do yourself a favor and buy TurboTax for Small Business. It's around $90 (deductable of course). It will allow you to play with different scenarios and you will come to realize that you have been paying way too much. You can amend your taxes for 3 years so you can get back some of that money that you've been overpaying all of these years. Good grief man.

[TJLANDS]

Originally Posted by Richard Martin

Yeah, the easiest way to pay wayyyy too much in taxes. This has to be some of the poorest advice you have ever given here. Do yourself a favor and buy TurboTax for Small Business. It's around $90 (deductable of course). It will allow you to play with different scenarios and you will come to realize that you have been paying way too much. You can amend your taxes for 3 years so you can get back some of that money that you've been overpaying all of these years. Good grief man.

I second that,

[GlynnC]

Originally Posted by Richard Martin

Yeah, the easiest way to pay wayyyy too much in taxes. This has to be some of the poorest advice you have ever given here. Do yourself a favor and buy TurboTax for Small Business. It's around $90 (deductable of course). It will allow you to play with different scenarios and you will come to realize that you have been paying way too much. You can amend your taxes for 3 years so you can get back some of that money that you've been overpaying all of these years. Good grief man.

I agree with Richard. In a prior life, I was an accountant. Business expenses are all deductible from the gross income of the business, then the standard deduction is still available for the individual (if I remember the tax rules correctly). Most of the time, taking the easy way to calculate your taxes puts a smile on Uncle Sam's face, and a whole in your pocket!!!!