chip truck

[ROLLACOSTA]

whats the life exspectancy you would want from a new truck ?.how long on average do you keep a truck?..and do you guys trade in your kit fairly regular to avoid high tax bills ?[i'd rather have new truck/chipper than pay a high tax bill imo ]

 

[NeTree]

Well, lemme just say...


STILL GOING!

 

[NeTree]

I'd just as soon keep the older stuff going. It's cheaper in the long run.

Besides, it took me all those miles to get the seat just the way I like it.

 

[NeTree]

Here's another oldie of mine, still going...

'70 Ford C-600

 

[Nickrosis]

Old trucks that run are the best! But if I had my way, everything would be under 10 years old. Or under 100,000 miles, whichever comes last.

My daily driver has 30,168 miles on it and is a 1991 International 4700. Runs perfect every day. Wearing out the first sent of front tires.

 

[glens]

There should be posting guidlines regarding embedding large images!

:<tt>-</tt>(

Luckily my stop button / Esc key work.

 

[NeTree]

:angel:

 

[MasterBlaster]

Sweet truck, Erik! I like the covered headache rack, so many don't do that.

 

[NeTree]

Originally posted by MasterBlaster


Sweet truck, Erik! I like the covered headache rack, so many don't do that.

Custom fabrication by yours truly.

 

[ROLLACOSTA]

overhere we can claim 100% of our truck /plant payments back [tax deductable] basicly its in our best intrest to run new kit ..how much money percentage wise can you guys claim for chippers trucks etc in the USA

 

[Nickrosis]

Lease payments are expensed. You can depreciate a vehicle to its salvage value over it's estimated life span (3-10 years, usually) using straight-line, double-declining, or units of production methods of calculating depreciation. In this case, probably straight-line depreciation.

If you're looking to post high earnings, leasing is the way to go. If you're looking to reduce your tax liability, buying outright is your best bet. Companies that take a 50% write-off immediately often are not big-picture people, from what I've learned.

 

[ROLLACOSTA]

hi Nick i remember once buying an espensive peice of kit outright cash no lease hp etc and found from a tax point of veiw it was not a financialy good idea[i could only claim for 40% back in total if i remember correctly]..i have always found a system overhere called lease purchase is the best bet..ie you can claim 40% back[claim against earnings] the first year then 25% each year until the item is paid for...some people like a tax bill i prefer a new truck thanks to the tax office

we have another tax system overhere called value added tax..ie i charge my customers an additional 17.5 tax on top of my rate for a job ..ie a £100 job turns into £117.5...anyone earning over £54,000 must charge this tax...but the benifits for me are trucks plant petrol diesal etc etc are all 17.5% cheaper than if your not registered as a VALUE ADDED TAX COLLECTER..do you have a simaler system??

 

[ROLLACOSTA]

i have a feeling the 'straight line' works the same way with our tax guys as it does yours..lease purchase way to go imo

 

[Nickrosis]

Well, straight line depreciation does this to determine the deduction:

Year One through Ten:
(Purchase price - salvage value) / Estimated life in years

(25,000 - 5,000) / 10 = $2,000/year

Book Value over Time:
End of Year One: 25,000 - 2,000 = 23,000
End of Year Two: 23,000 - 2,000 = 21,000
etc.

You would depreciate when you buy (i.e. loan) versus lease (i.e. bank owns it, buyout option at the end of the lease).

 

[ROLLACOSTA]

we work it like this


item cost £10,000

year 1 - 40% = leaving £6000


year 2 -25%= leaving £4500


year 3 -25%=leaving £4000

keep on takeing off 25% yearly


but as you can see the loop whole is the first year..many many firms buy a new truck etc after 3 years thanks to our silly system..and you do not have to give any money back to the tax office even if you sell the item after 1 year..total madness imo

 

[protreecare]

IF you aren't making enough to keep decent equipment, then something is not right. You sheould be able to keep equipment no longer than 10-15 years old max.

 

[Dadatwins]

Sweet old trucks Netree, the old ones were built like tanks and ready to work. Some old pictures of my old trucks, they were sold but I wish I still had them now and then, especially since they dump.

 

[DDM]

Heres a few of mine. This was my First Chip Dump / Wood Hauler

 

[DDM]

Here was the Next.......

 

[DDM]

And Another......Bet you cant guess where this one came from......