The great tax game.

Discussion in 'Business Operations' started by integrityman, Jan 13, 2013.

  1. integrityman

    integrityman LawnSite Bronze Member
    Messages: 1,713

    Im always puzzled and left scratching my head with tax advantage new equipment purchase questions. Specifically If I should buy new, used, finance, pay cash..... maybe this is just a rant or vent session.... I get so frustrated with the tax game......

    Im in the market for a replacement truck and perhaps a new w/b mower.

    A new Scag 48 Pro-V 48" is $4700 plus tax......and they are offering 0%APR for 48 months..... Im also looking at an exmark with a propane option...with substantial tax credits for purchase of one of these too....

    Im looking a a new 3/4 tons too....having the same debate with myself 40k for new vrs 1/2 that for something used......Do I get more tax benefit depreciation benefit with something newer???? I need to sit down with the accountant.....

    Cant this be any simpler????
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

  3. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Messages: 3,336

    Ive screwed myself over many times buying equipment in the name of saving on taxes. I'm starting to think that if you can't pay cash for it, you don't need the tax benefit. I would like to open a traditional IRA this year. I think you can contribute $5,000 tax free. The downside is you have to pay taxes on the earnings where as with a Roth IRA you do not.
  4. integrityman

    integrityman LawnSite Bronze Member
    Messages: 1,713

    Roth IRA you contribute too after taxes are taken out......earnings are tax least for right now.
  5. ToddH

    ToddH LawnSite Silver Member
    Messages: 2,192

    It is kind of like Amway, you can not spend yourself into riches. Only buy if you have a need and can afford it. Otherwise vote smart and pay the taxes.

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