end of year spending... best value for expense?

Discussion in 'Heavy Equipment & Pavement' started by janb, Dec 24, 2005.

  1. janb

    janb LawnSite Senior Member
    Messages: 254

    I re-ran my taxes and need to spend some more 'sect 179' $$ next week (I got laid off from 32 yr Hi-Tech, and got severance + vacation payout)

    I know I will have lots of takers for spending money payup

    but...for the rest of the year I will get ~25% tax savings on whatever I spend. (up to $400k:eek: , not going there:dizzy: ) I really only need to spend another $10-$15k, basically, If I don't buy it this year, it probably won't get bought (with exception of vehicle) I plan to run business for 3-5 yrs, (while I'm going back to college, for 'retraining'), then sell business, and move to a sunnier clime.:cool:

    What machines / attachments have best retained value, and earning capacity? (tractors, excavators, tracked dump-mobiles)
    My business is mainly 'Brush / Land clearing' and 'defensible space', rural fire mitigation in dense veggie PNW.

    my used Bobcat came with; BrushCat mower, Stumpgrinder, Chipper, Grapple, 6 way, timber winch, bucket, and now 4:1 combo bucket.

    I still need to get a power pole pruner, and newer weed eater, and of course will buy a few years supply of filters and oil. A flail mower and auger are on 'wish list'. I do need an upgraded truck, but am reluctant to spend 179 $$ on highly depreciable 'road vehicles'. I like to spend on something that I can use for a few years and sell for a decent price (not losing my shirt):blush: A brand new tractor is tempting, as they seem to hold value, if well maintained, and stored inside. I really don't have a pressing need for a tractor, as bobcat and dozer can do most work (but they are both 'tracked' = $$$ for maint, and not practical for running the 'wheels' off. i.e. tires are much cheaper)

    any suggestions?
  2. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    Buy a used mini excavator. I kid you not you'll use it more than your skid steer. Best move we ever made. We put about 200 hours on our 303CR in 6 months which is unheard of, our skid steer which is 2 years older only has 350 hours on it.
  3. janb

    janb LawnSite Senior Member
    Messages: 254

    thx for info,
    What is weight of 303CR, and recommendations if to do over...?
    What is primary use of excavator?.
    landscaping; %
    trenching; %
    excavation; %
    material handling; %
    other; _____________ %

    I am most concerned about the insurance factor when I start digging over 2 ft deep.

    I could have used one on the last two jobs, so don't doubt their benefit
  4. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    Compact disel tractor you will loose only 2-4k if well maintained in the next 4-5 yrs. With a good chance of breaking even if the prices continue to rise
  5. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    I love the 303CR, we bought Cat for dealer support. I would have looked into a Deere 35D if the dealer would have given me a demo, but since he basically ignored the fact that I wanted to spend $40K with him I basically hung up the phone after messing around with him and went back to my Cat dealer. Same with Bobcat, would have loved to check out a 430 but again, wouldn't give me a demo. I would look at Kubota, Cat, Bobcat, Deere, Takeuchi.

    We use our machine about 60% for landscaping, 15% trenching, 15% excavation, 10% material handling.
  6. ksss

    ksss LawnSite Fanatic
    Messages: 7,168

    They make brush cutters for mini excavators as well. This would work well with your brush cutting market. It makes working in right of ways much easier. With the extra reach you could brush cut in places that are not feasible with just a skid steer. You would probably need a 10,000 pound machine with a cab and decent hydrualic flow. I agree with Skag. A mini excavator is a great addition. They prolong the work year and makes you much more marketable. Everyone has a skid steer. The mini allows you to take on jobs that some others can't. I would also save some of that $$$ to maintain the 864. That was Bobcats 1st venture into the tracked market and it has some issues.
  7. qps

    qps LawnSite Bronze Member
    from Indy
    Messages: 1,484

    Be careful that your state doesn't screw you like Indiana does...even though uncle sam will let you take 100 grand or whatever it is in 05 your state may not, Indiana only allows 25k..anything over is taxable:realmad: bunch of crap if you ask me....bought a 40k wide area mower, took the 179 but got hosed and owed almost 3k on my state returns....Indiana sucks on tax breaks for the little guy, they'll let these big companys move and build everywhere and let them off tax free for years.....bull.....then our local gov. hassles the little guy on B.S. zoning and other things...oh well...:p
  8. janb

    janb LawnSite Senior Member
    Messages: 254

    WA state = one of few w/o personal income tax:)(from the 'left coast'> AK, WA, WY ?, NV, TX?, FL, NH?), This has been very good to me over last 20 yrs (actually my wife... since she will get the $$ when I croak over) We do pay $500/month in prop taxes on our 'shack-of-a-home'... (more than house payment)

    but... as usual...the state corp $$ have lobbyed to make small guys pay bulk of taxes. there is still 'use tax' (same rate as sales tax (7.9%) + Personal Property Taxes (1.5%) + B&O ...

    I will be doing this all as Sole Prop. this year, (less restrictive) but everything rolls to LLC's in 2006. Of course my future profit will be nil :blush:
  9. murray83

    murray83 LawnSite Senior Member
    Messages: 347

    the cat 303 was a life saver this summer while we replaced a pipeline rack along a rock ledge, it was just wide enough to sneak through. We had an older 35 deere and it was garbage, the cat even though a rental earned its keep i really like the fact u can switch between excavator and backhoe controls but has any of u had problems with the skidsteers? we had a few lemons this summer and just wondered if anyone had a similar problem?
  10. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    We had a couple problems with our 216 within 6 months of purchase. There was an air bubble in the cooling system causing the engine to cavitate. The service guys said that it was a very uncommon problem and we haven' had overheating issues since June 2004, the last time the machine was in the shop.

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