What to do?

[redlevel]

Been a member a few years, but I don’t think I have been back to the forum since I registered.
Now, I’m looking for some information and advice.

I have an MX4800, a 2017 model. About 1600 hours. Has front loader. Good condition.
I probably need to do something this year for tax purposes. Options:
1. Stand Pat. Do nothing.
2. purchase a new tractor and keep the MX4800. Probably an “L” series, possibly a “B” series.
3. Trade up to the next higher tractor, which I think is MX5400.
4. Trade down to the larger compact tractor.
5. Sell my tractor and buy a new one.

The 4800 has been a good tractor. Have wished for a little larger, because it is about as small a tractor I could handle large round bales (800 pounds) with. However, I have leased my pasture to a neighbor, and sold my cow herd, so that isn’t such an issue now.

I do extensive gardening. 4=5 acres. I have to keep several acres mowed, like 5-6 acres. I use an auger for post holes, and have a 6 foot land pride mower, and 6 foot dirt dog harrow.

Questions:
1. about what is my tractor worth?
2: Do the sub compact and compact tractors hold resale value as well as the ag utility tractors?
3. Is it easier/more advantageous to trade up, or trade down?
4. would I do better to trade, or sell my tractor and buy a new tractor?

I would love to have two tractors. I could do a lot of work with the largest sub compact Kubota has, and keep my 4800. However, I don’t want to buy one of the little tractors and see it decline in value. I have had very good luck buying 40-60 hp ag utility tractors and reselling with very little depreciation. Don’t know if that would be the case with the smaller units. I’m 75, and want to leave my family with assets they can liquidate easily, and hopefully profitably.

I have a very good Kubota dealer within 30 miles that I have used for 40=50 years, so Kubota is what I will buy, if I do something.

Middle Georgia, mostly row crop, peach, and cattle country.

 

[jyoutz]

All of the MX tractors are the same frame and weight and have the same loader. I see no sense in trading a MX4800 for a MX5400. The MX is a perfect size for light utility tractor needs and not much larger than a grand L. I have a MX6000 and like the size. If I would go larger it would be for the M6060 size, smaller, it would be a B series and keep the MX. But it seems to me that for your uses, you already have the right machine.

 

[North Idaho Wolfman]

I would look at an L for what your needing to do.

The MX's have real good resale value.
Looks like in the $24K to $28K range.
Look at local sales to get better prices.

 

[PaulL]

Depends what your tax purposes are.

I don't see a reason to replace your MX with another MX, and at 1600 hours it's nowhere near worn out. You could get a newer one on the basis that it'll "see you out" as my father was in the habit of saying. But actually the MX you have will probably also see you out. Perhaps a newer one would have more value in it in 10-15 years time (depending on how many years you think you have left in you). But cash in the bank also always has value in it......

So I'd be going with either standing pat on the basis you have the machine you need and it works fine. Or, I'd be getting a second machine if you have some money that you'd get a good tax write-off by spending, and you have a use for a second machine.

Then the question is what the second machine would do that the MX doesn't. Or whether you just want/need two machines (one to pull the trailer, one to load it, for example).

On trade up or trade down - makes no difference. They sell you a new machine (of whatever size), they pay you about $3-5k less than they think they'll sell your MX for. They don't care which new machine they're selling you, they make money coming and going.

On the question of resale - compact tractors also hold their value pretty well. Like most things machinery, they're usually worth what you paid for them in 5 years time, but the new ones cost 20-30% more than that (i.e. new ones get more expensive, yours stays worth what you paid mostly).

So it's not an investment (it doesn't go up), but it'll be liquid for the family (or they can use it if they have a purpose in it).

A B2601 or an LX2610 (or a high HP LX) would mow, move dirt, till and run an auger just fine. The main reasons to go to an LX would be:

• You want a cab
• You want to run a 72 inch belly mower (although many guys at 75 years old don't want to mess with belly mowers)
• You want a lighter machine close to the house - an MX is pretty big to be mowing house lawns
• You want to blow snow (I assume you don't in Georgia)

A B2601 is smaller, does all those same things, but no cab and a 60 inch belly mower. Less money to spend, potentially more use to a family member after you're gone. A B would have a bit more trouble with 6 foot implements. It's not that it wouldn't do it, but it's a stretch - more because of weight on the 3ph than anything.

If the MX does everything you need, and you're only buying a compact for a tax write-off, maybe a mini-excavator or a skid steer, or maybe a new truck, could also give you that write-off, and add something to your fleet that a second tractor wouldn't. Or perhaps your MX needs a backhoe added to it, or you need some implements that would give a write-off?

 

[GeoHorn]

For tax purposes? I would research the European and Asian mfr’s in-person as part of my tractor shopping effort. Many of the subcontractors are located along the Rhine and Viking has boats that provide easy transport along the Rhine.

 

[DustyRusty]

Been a member a few years, but I don’t think I have been back to the forum since I registered.
Now, I’m looking for some information and advice.

I have an MX4800, a 2017 model. About 1600 hours. Has front loader. Good condition.
I probably need to do something this year for tax purposes. Options:
1. Stand Pat. Do nothing.
2. purchase a new tractor and keep the MX4800. Probably an “L” series, possibly a “B” series.
3. Trade up to the next higher tractor, which I think is MX5400.
4. Trade down to the larger compact tractor.
5. Sell my tractor and buy a new one.

The 4800 has been a good tractor. Have wished for a little larger, because it is about as small a tractor I could handle large round bales (800 pounds) with. However, I have leased my pasture to a neighbor, and sold my cow herd, so that isn’t such an issue now.

I do extensive gardening. 4=5 acres. I have to keep several acres mowed, like 5-6 acres. I use an auger for post holes, and have a 6 foot land pride mower, and 6 foot dirt dog harrow.

Questions:
1. about what is my tractor worth?
2: Do the sub compact and compact tractors hold resale value as well as the ag utility tractors?
3. Is it easier/more advantageous to trade up, or trade down?
4. would I do better to trade, or sell my tractor and buy a new tractor?

I would love to have two tractors. I could do a lot of work with the largest sub compact Kubota has, and keep my 4800. However, I don’t want to buy one of the little tractors and see it decline in value. I have had very good luck buying 40-60 hp ag utility tractors and reselling with very little depreciation. Don’t know if that would be the case with the smaller units. I’m 75, and want to leave my family with assets they can liquidate easily, and hopefully profitably.

I have a very good Kubota dealer within 30 miles that I have used for 40=50 years, so Kubota is what I will buy, if I do something.

Middle Georgia, mostly row crop, peach, and cattle country.

You will need to go into the details of the financial part of the question since you are looking for tractor advice in regards to tax advice. Probably, you would be better off asking your accountant what he/she suggests about the financial side of the equation, and then deciding what type of advice you would need to get that advice to mesh with the tractor advice.

 

[John T]

Tax purposes??

Keep the MX4800 and buy a new 4 door dually diesel pickup truck with bigs tars and 6" spikes....

you know you want it.

.

 

[SDT]

Been a member a few years, but I don’t think I have been back to the forum since I registered.
Now, I’m looking for some information and advice.

I have an MX4800, a 2017 model. About 1600 hours. Has front loader. Good condition.
I probably need to do something this year for tax purposes. Options:
1. Stand Pat. Do nothing.
2. purchase a new tractor and keep the MX4800. Probably an “L” series, possibly a “B” series.
3. Trade up to the next higher tractor, which I think is MX5400.
4. Trade down to the larger compact tractor.
5. Sell my tractor and buy a new one.

The 4800 has been a good tractor. Have wished for a little larger, because it is about as small a tractor I could handle large round bales (800 pounds) with. However, I have leased my pasture to a neighbor, and sold my cow herd, so that isn’t such an issue now.

I do extensive gardening. 4=5 acres. I have to keep several acres mowed, like 5-6 acres. I use an auger for post holes, and have a 6 foot land pride mower, and 6 foot dirt dog harrow.

Questions:
1. about what is my tractor worth?
2: Do the sub compact and compact tractors hold resale value as well as the ag utility tractors?
3. Is it easier/more advantageous to trade up, or trade down?
4. would I do better to trade, or sell my tractor and buy a new tractor?

I would love to have two tractors. I could do a lot of work with the largest sub compact Kubota has, and keep my 4800. However, I don’t want to buy one of the little tractors and see it decline in value. I have had very good luck buying 40-60 hp ag utility tractors and reselling with very little depreciation. Don’t know if that would be the case with the smaller units. I’m 75, and want to leave my family with assets they can liquidate easily, and hopefully profitably.

I have a very good Kubota dealer within 30 miles that I have used for 40=50 years, so Kubota is what I will buy, if I do something.

Middle Georgia, mostly row crop, peach, and cattle country.

I'm not one to make purchase decisions solely for tax purposes but am aware that some folks do.

If you have the time and wherewithall, it is always better to sell/buy rather than trade as all dealers will expect to make money on both your trade and new tractor.

I have found it punishing to trade, especially downward.

 

[fried1765]

For tax purposes? I would research the European and Asian mfr’s in-person as part of my tractor shopping effort. Many of the subcontractors are located along the Rhine and Viking has boats that provide easy transport along the Rhine.

A tax write-off, tractor shopping trip,.... along the Rhine?
I do like the concept!

 

[GreensvilleJay]

'tax purposes' ? Kinda curious about what that involves and how it works, south of the 49th.
here, tractor would be an 'asset' though you can 'write off' the depreciation.
If you buy a new one, a HUGE new 'asset' so 'net worth' goes up, btm line goes up, pay more taxes.

 

[skeets]

So let me see, you do row farming, and a peach orchard, and some live stock, so you want need a farm sized tractor, if I understand. If that being the case for sure the "L" with the stuff you think you might need. Also, and I am digging way back to when we owned the green houses, the tax wright off has changed a lot over the years, and your accountant is the person to speak to, even if it costs you a few bucks! Second, keep the MX 4800, there are lots of thing as you know a small tractor will do a larger one cant and visa versa.
And to be honest, when you are in that box, someone is going to try and screw someone else out of everything you worked so hard for.
And yes a tractor, well kept, with the big "K" will more then likely draw top dollar,, just MHO you understand

 

[PoTreeBoy]

You've put 1600 hrs on in 7 years, so your usage is higher than most of us I think. At that rate, in 7 more years you'd have over 3000 hrs on it. Some where around there, I think they start depreciating appreciably. But since you've gotten out of the hay/cattle business, I suspect your usage has gone down. If so, stand pat.

If you need to scratch the itch, look at an LX4020. It has the power to run your cutter, but I'm not sure about lifting it. If you need something a little larger, look at the L3902.

As far as liquidity to your heirs, nothing beats cash.

 

[fried1765]

You've put 1600 hrs on in 7 years, so your usage is higher than most of us I think. At that rate, in 7 more years you'd have over 3000 hrs on it. Some where around there, I think they start depreciating appreciably. But since you've gotten out of the hay/cattle business, I suspect your usage has gone down. If so, stand pat.

If you need to scratch the itch, look at an LX4020. It has the power to run your cutter, but I'm not sure about lifting it. If you need something a little larger, look at the L3902.

As far as liquidity to your heirs, nothing beats cash.

Cash is great.....for your heirs......
But , for you......a new tractor is FUN!

 

[rc51stierhoff]

Been a member a few years, but I don’t think I have been back to the forum since I registered.
Now, I’m looking for some information and advice.

I have an MX4800, a 2017 model. About 1600 hours. Has front loader. Good condition.
I probably need to do something this year for tax purposes. Options:
1. Stand Pat. Do nothing.
2. purchase a new tractor and keep the MX4800. Probably an “L” series, possibly a “B” series.
3. Trade up to the next higher tractor, which I think is MX5400.
4. Trade down to the larger compact tractor.
5. Sell my tractor and buy a new one.

The 4800 has been a good tractor. Have wished for a little larger, because it is about as small a tractor I could handle large round bales (800 pounds) with. However, I have leased my pasture to a neighbor, and sold my cow herd, so that isn’t such an issue now.

I do extensive gardening. 4=5 acres. I have to keep several acres mowed, like 5-6 acres. I use an auger for post holes, and have a 6 foot land pride mower, and 6 foot dirt dog harrow.

Questions:
1. about what is my tractor worth?
2: Do the sub compact and compact tractors hold resale value as well as the ag utility tractors?
3. Is it easier/more advantageous to trade up, or trade down?
4. would I do better to trade, or sell my tractor and buy a new tractor?

I would love to have two tractors. I could do a lot of work with the largest sub compact Kubota has, and keep my 4800. However, I don’t want to buy one of the little tractors and see it decline in value. I have had very good luck buying 40-60 hp ag utility tractors and reselling with very little depreciation. Don’t know if that would be the case with the smaller units. I’m 75, and want to leave my family with assets they can liquidate easily, and hopefully profitably.

I have a very good Kubota dealer within 30 miles that I have used for 40=50 years, so Kubota is what I will buy, if I do something.

Middle Georgia, mostly row crop, peach, and cattle country.

Good day.

Couple things I would be thinking about:
1. What type of gardening and tasks on those 4-5 acres?

2. Assuming you have been doing that with the MX, do you have implements that will fit and work with smaller machine?

3. Do you mind if it takes longer with smaller machine?

4. Will you miss the lift capability / pull capability of the MX that I assume is paid for?

Those are my simple thoughts. I am obviously biased towards multiple machines. Good luck.

 

[Hkb82]

lots of variables in this one. I think if it were me in your situation from what I understand I’d keep the Mx and be looking at a second tractor to help for tax’s. This might allow future family members that want to keep the farm the ability to free up some cash and still have one tractor to work the farm. Also would slow the hour meter down on your Mx by having another tractor. I do think your tractor is sized pretty good for the jobs you listed. Not sure if you have work for them but i liked the mini excavator or skid steer idea. Again only if you could use them. Maybe even a bx23s tlb.
Around me trading in equipment I’ve never heard of getting even close to what the used market is selling for and most dealers I’ve spoke to tell me that straight up. I’m better to sell it myself online in the used market. Maybe if you’re buying and selling all the time dealers work with ya more. Beats me. I’m just not a fan or the trade in. I bet they would offer me 10k less then they would sell your tractor for on trade in my area.

 

[JimmyJazz]

It sounds like a need is being manufactured for an issue that doesn't exist by someone with nothing else to think about. This happens to me from time to time. I would do nothing if I were you. At 75 of age and having had lots of experience with this kind of thing you should be giving advice and not asking for it. If you want to keep things simple for your heirs leave them money and not another tractor.

 

[D2Cat]

You've obviously worked your whole life and enjoy it. Quit being concerned about others, just go buy what you WANT and enjoy it. Leaving something for others is for them to worry about, not you!

 

[NorthwoodsLife]

My 2 cents...

I don't know you. But as for me. I spent 35 years of my life, between my ages of 20 y/o to 55 y/o, working hard for the money to raise my kids and help them get a college degree. And be successful. They all got it eventually, but a couple of them not quite the way I imagined. And they now make more money than I did at their age, even considering inflation. They no longer Need my money.

So, my wife is number one, as always. And then the kids will get what's coming to them. If there's anything left. They don't need it. Unless there are special needs individuals involved, (in my case there are not), I'd say; Live it up, @redlevel. Buy that new tractor. The one you want. No need for reason or excuses, you earned it.

I plan to slide into the next life having a blast. Riding my motorcycle too fast or driving my Jeep too steep or polishing a new tractor too much. I could be wrong, but I think I've earned it. You probably have too.

 

[WFM]

Or you could just send the IRS a s*!% load of money like I did last tax season. For Nothing.

 

[redlevel]

Wow!

My accountant, being from a farming family, and being a substantial landowner, is always in favor of me buying a new tractor.

Yes, I know cash is king, but if I can keep from sending Uncle Sam a big check by buying a tractor, what’s wrong with that? In these parts, a good used tractor is an easy sell, and anyhow, my heirs just might want to keep it to use on the several hundred acres we own. Right now, the tenants are doing the upkeep, but that might not always be the case.

I realize the MX4800 is just about the ideal tractor for my uses. I realize trading for the MX 5400 wouldn’t be an upgrade, but it would be a NEW tractor, and would satisfy the need for a tax write off. I really can’t understand the apparent lack of enthusiasm for the tax write off. Do you guys enjoy sending money to Sam?


Jimmyjazz said:
“It sounds like a need is being manufactured for an issue that doesn't exist by someone with nothing else to think about. This happens to me from time to time. I would do nothing if I were you. At 75 of age and having had lots of experience with this kind of thing you should be giving advice and not asking for it. If you want to keep things simple for your heirs leave them money and not another tractor.”


Yes, there is an element of this. However, if I can keep the .gov from getting a chunk of that cash, I ask again, what’s wrong with that? And at 75 years of age, yeah, I can give advice based on years of what my old Daddy called “bought experience,“ but I ain’t above asking for advice, either.