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Tax 1031 questions and thoughts??????

Discussion in 'Heavy Equipment & Pavement' started by Construct'O, Dec 23, 2009.

  1. Construct'O

    Construct'O LawnSite Bronze Member
    from Sw Iowa
    Messages: 1,387

    Trying to work up a tax plan and time is running out.Been talking to my tax man,but looking for a little input here also.

    Okay bought Alberta big charge of debt,for me at my age,but have had a good year as far as income not because it was easy(weather).Bought the machine outright,without trade,because of private sale and dealer not getting a machine and devaluing my other trencher on trade.So went the i sell on my own.

    Which one is gone,but would like to sell the other here also before the end of the year (if it happens) so i can do a 1031(accelrated depreciation) has to be done in the same year,plus it will be less next year then this if i sell machine after the first of the new year.

    Everything depend on if i sell the other machine before the first of the year.

    Trying to balance income and sales of two machines in the same year.

    And no more purchase this year.

    My thought are get all the income in this year,what ever happens ,pay tax.Then worry about next year when it get here.

    At least i would have all next year(365 days) to buy for depreciaton or whatever.Anyway any thoughts???? Thanks

    Stu what do you think:confused::usflag:
  2. stuvecorp

    stuvecorp LawnSite Fanatic
    Messages: 5,245

    The final word is always what the accountant says.:)

    I'm not the best to give advise on accounting stuff, I drive mine crazy - but not on purpose of course.
  3. RockSet N' Grade

    RockSet N' Grade LawnSite Silver Member
    Messages: 2,454

    Constructo.....that is a tough one to answer in general terms. You need to consult a pro who can crunch your books down and see where you are and then develop a game plan. That stuff pays to be proactive and have a shrewd creative accountant on your side.....that is where the real money is made and lost.
  4. Construct'O

    Construct'O LawnSite Bronze Member
    from Sw Iowa
    Messages: 1,387

    Rock been working on this with the tax planner,back when i got Alberta.

    If i had gotten the machine a month early like planned,and gotten it ready to use faster,then the two older machine would have been gone then i could have planned things around those sales.One is gone,and other may go here in the last few days of the year(someone lese tax right off).

    The trouble is time and what happens in the last minutes,so hard to plan something down to wire.Plus with the holidays coming up hard to get everything done(people gone and business closed),then you through in the crapy weather.Things compound themselve.

    Everything is like a bounce ball it keeps changing direction every minute,and the clock is ticking down.

    Main thing i was wondering if anyone was using a 1031 this year or in the past and how it worked for them???????:usflag:
  5. stuvecorp

    stuvecorp LawnSite Fanatic
    Messages: 5,245

    Denny, I haven't done the 1031. My depreciation is all regular and drawn out type because that is what the accountant says works for me. I hear you on the time part, I wish I had about two extra weeks right about now.:cry:

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