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1) The best time to buy a sprayer is right after you have finished most of your spraying, when it is fresh in your mind what attributes in a sprayer are most important to you.
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2) Apache dealers receive larger discount on factory orders if they retail the unit prior to October 15. This additional savings to the dealer is significant. TEll your dealer you want to compare the price to purchase now vs. the price to purchase next spring, then you will see what we mean.
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3) As you are probably aware, there are big incentives for farmers to make capital purchases in 2008. Specifically for US farmers
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A) Section 179 election increased from $128,000 to $250,000.
This means if a taxpayer places in service up to $800,000 in personal property (such as equipment), up to $250,000 can be expensed in 2008 instead of capitalized and depreciated. If their equipment purchses do not qualify for the section 179 expensing (please advice them to talk to their accountant to see if they qualify), then |
| B) Bonus depreciation of 50% of the cost, and normal depreciation on the balance. |
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Customer purchased sprayer for $180,000. Customer does not use section 179 election. |
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First year depreciation is as follows: |
| Bonus depreciation is $180,000 * 0.5 = $90,000 |
| Regular depreciation on balance - $90,000 * 14.29% (for a 7 year asset) = $12,861 |
| Total depreciation in 2008 = $102,861 |
| The remaining $77,139 is basis will be depreciated over the remaining 6 year life. |
| Both provisions expire in 2008 and we obviously will not know what's in store for 2009 until after the elections. |
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