Tractor Depreciation - Any accountants out there?

[Atlanta Panther]

Does anyone know a reasonable figure to use for tractor depreciation? I have a Kubota L3200HST that I use probably only about 50-75 hours a year mowing the pasture, hauling horse manure, putting in fence posts, etc. I'm not asking for tax purposes, just trying to figure out what my assets are worth each year. I paid $19K for it new and a few implements back in 2013 and another $2300 in additional implements within a year.

I know that straight line depreciation would be (cost-salvage value)/#(hours or years, take your pick) but I don't know how many hours or years it should last, being reasonably maintained plus I assume its like a car where the biggest depreciation is as soon as you drive it off the lot the first year.

Anyone with any suggestions?

 

[clay45]

I'd think its good for 5000 hours anyway.

 

[85Hokie]

Not knowing anything about taxes and whatnot -
but I would agree the biggest depreciation is right out the door, but a car/truck will continue to go down in price right down to a low point of $1000 - a well cared for tractor will depreciate to a certain point and hold for a while. Much like old B7100 - still getting 50% of what someone paid for it - dollars have changed value but the machine value is still high.

AS for taking off taxes - some use 10 years, - not sure what the best bang for the buck is either.

If those are the only hours you use, I would think it would last 50 years!

 

[bucktail]

An accountant can only help you with depreciation for tax purposes unless they happen to have a good handle on used equipment values. You can look online to see what similar equipment is going for, or ask in the purchasing section of this website.

 

[adventure bob]

If your setting a value as for assets in a loan situation, or estate valuation, use market value. Depending on what paperwork your filing you may have to have a certified assessment; an auction house or a dealer.

Equipment Trader or an auction site is prbly your best way of arriving at the value. Has nothing to do with depreciation or utilization or anything other than what you would pay for a similar tractor on the market at this time.

If your doing it for a legal issue, your going to have to use the depreciation methods used in the tax code.

 

[Benhameen]

http://www.tractorhouse.com/listing...ractors/manufacturer/kubota/model-group/l3200


This might give you an idea of the value.