My new loader

showcrop · Dec 10, 2016

Well not mine, but the guys who I drive truck for occasionally.

They have to buy something expensive every year or they pay huge taxes on profits. This should give them about a $30K deduction. It is pretty easy to drive, but like with anything there is a learning curve. I had some problems at first and one of the brothers said that he had to reprogram some things. As usual that didn't happen, so I called the salesman, and he explained about the bank of rocker switches next to the loader control sticks. Sure enough I was able to reset functions to what is to me how a loader should work. It is hard to get used to not having an engine roaring away behind me. It is as quiet as a Mercedes inside.

Geo-TH,In · Dec 10, 2016

Smart thinking to invest, instead of paying taxes.

Case Nutty 1660 · Dec 10, 2016

I have put thousands of hrs on front end loaders,, much in a 4 yard sized machine,, looks like the one above is in that range,, Case, Hough, Cat, Michigan, also ran a Komatsu they brought out for a demo,, seemed fine at the time,, they bought Cat as they keep their resale better at least around here,,, good times
cnt

centash · Dec 10, 2016

Nice machine! Enjoy the ride. Ben

john in la · Dec 10, 2016

I can remember back years ago when Cat and JD hoes had a different stick configuration.
A good operator could get out of one and into the other without a glitch.

Then they made it to where a mechanic could change the stick configuration.
Now I see the operator can change it with dash switches.

And so we have turned the word operator into lever puller.

The one configuration that always got me was the 3 stick case with foot swing.
Always had to slow down as it never became just a subconscious action to operate.

JD Seller · Dec 10, 2016

John I started out on a Case 530 hoe. I never had any trouble with the three levers as I started out on them. I still can feather things better with the old three lever valve. I have had JD hoes for 20 years now. It took me several years to get used to the two lever set up. If I am out of it for a period of time I have to stop and think about the controls some times until it comes back to me. My Brother still has an older Case hoe with the three levers and I can jump on it and take right off. Old dog old tricks. LOL

Have any of you ran the newer loaders that the steering is on the one Joy stick???? The terminal we haul fertilizer out of is using them. This is supposed to help prevent carpel tunnel. IRC they are Volvo loaders.

Texasmark1 · Dec 10, 2016

Buying something just for the sake of the tax deduct is only the difference in percentage of the would be brackets between the two choices. If
you are in say the 15% bracket and through profits moved to the 35% (assumed numbers, not actuals but close enough) you would be required
to pay 35K-15k = 20k in additional taxes on a $100k additional profit leaving you $80k in your pocket to spend on something you need or to
invest.

So, how do you justify buying just for the sake of buying? I never could figure that one out and that's why I am my own "tax expert, consultant,
CPA, money manager" or whatever you choose to call it.

However, if you have an item fully depreciated and the maintenance costs are rising, and you are considering a replacement having the
amenities to work more productively and make you more profit and pay less tax as a result then.............what are you waiting for?

casecollectorsc · Dec 10, 2016

I agree, got a brother-in-law that every year about this time trades tractors or pickups or buys some piece of equipment to reduce taxes. Never really makes sense to me.

showcrop · Dec 10, 2016

(quoted from post at 07:11:21 12/10/16) I have put thousands of hrs on front end loaders,, much in a 4 yard sized machine,, looks like the one above is in that range,, Case, Hough, Cat, Michigan, also ran a Komatsu they brought out for a demo,, seemed fine at the time,, they bought Cat as they keep their resale better at least around here,,, good times
cnt

They said that this one is good for five yards but that they went for four because we are not on smooth level ground like they are in a quarry.

showcrop · Dec 10, 2016

(quoted from post at 08:25:19 12/10/16) John I started out on a Case 530 hoe. I never had any trouble with the three levers as I started out on them. I still can feather things better with the old three lever valve. I have had JD hoes for 20 years now. It took me several years to get used to the two lever set up. If I am out of it for a period of time I have to stop and think about the controls some times until it comes back to me. My Brother still has an older Case hoe with the three levers and I can jump on it and take right off. Old dog old tricks. LOL

Have any of you ran the newer loaders that the steering is on the one Joy stick???? The terminal we haul fertilizer out of is using them. This is supposed to help prevent carpel tunnel. IRC they are Volvo loaders.

They said that they could have gotten joy stick steering on this one if they wanted. I tried a big Komatsu dozer out some fifteen years ago that had joy stick steering. Kind of like an excavator with a stick in each hand.

showcrop · Dec 10, 2016

(quoted from post at 08:58:22 12/10/16) Buying something just for the sake of the tax deduct is only the difference in percentage of the would be brackets between the two choices. If
you are in say the 15% bracket and through profits moved to the 35% (assumed numbers, not actuals but close enough) you would be required
to pay 35K-15k = 20k in additional taxes on a $100k additional profit leaving you $80k in your pocket to spend on something you need or to
invest.

So, how do you justify buying just for the sake of buying? I never could figure that one out and that's why I am my own "tax expert, consultant,
CPA, money manager" or whatever you choose to call it.

However, if you have an item fully depreciated and the maintenance costs are rising, and you are considering a replacement having the
amenities to work more productively and make you more profit and pay less tax as a result then.............what are you waiting for?

This is an additional loader for them. The first is ten years old with just a 2.5 yard bucket. They keep that on job sites now, and the new one is at a housing subdivision, where they have temporary use of two lots for screening loam, crushing stone, and mixing material. The real estate people could sell those two lots tomorrow and then they have would no place to use the new loader.

Ken Macfarlane · Dec 10, 2016

Not sure its the same down south of the border but corporate taxes here aren't progressive ie its a flat rate.

Second, here they have a 1/2 depreciation rate the first year to discourage exactly what he's talking about but I've read in the US they have the same as here sometimes, special fast depreciation schedules sometimes to encourage investment.

We also have investment tax credits outside of that to encourage investment that can make buying equipment attractive for tax planning.

For our farm its easier to coordinate consumables use with profits for example, doing our liming in a fall where we've had a good year or say putting on P or K in the fall. Another example is we plan expensive repairs to equipment that have been delayed as long as they aren't in the categories of increasing the equipments basis, ie they just get the machine working again, not a major increase in value like a complete overhaul.

Butch(OH) · Dec 10, 2016

Nice, we bought a new WA480 back in June,
last of the tier 3 from Komatsu.

Case Nutty 1660 · Dec 10, 2016

where I worked they always went with the smaller of the bucket choices as well,, we could dig better and was easier on the machine,, and like you said a narrower bucket so more stable in side to side as well as ballast
cnt

Case Nutty 1660 · Dec 10, 2016

I forgot to add a local Oil drilling company here three years ago replaced their loader fleet,, they bought one for every rig they have and five extras I think it was, they had 35 brand new Volvo loaders about this size maybe one step bigger,, that was quite a sight before they got them swapped out at each rig wish I had taken a pic,,

oldtanker · Dec 10, 2016

(quoted from post at 08:58:22 12/10/16) Buying something just for the sake of the tax deduct is only the difference in percentage of the would be brackets between the two choices. If
you are in say the 15% bracket and through profits moved to the 35% (assumed numbers, not actuals but close enough) you would be required
to pay 35K-15k = 20k in additional taxes on a $100k additional profit leaving you $80k in your pocket to spend on something you need or to
invest.

So, how do you justify buying just for the sake of buying? I never could figure that one out and that's why I am my own "tax expert, consultant,
CPA, money manager" or whatever you choose to call it.

However, if you have an item fully depreciated and the maintenance costs are rising, and you are considering a replacement having the
amenities to work more productively and make you more profit and pay less tax as a result then.............what are you waiting for?

Mark I'm not sure the logic is right but this is how it was explained to me by my banker: If lets say you would have to pay 30K in taxes but if you bought something that would reduce those taxes to say 10K that saved 20K can be applied to the cost of buying said item. And at the end of the day you have the item which has value instead of letting the government just spend it and have nothing to show for it.

Now on the other side by the purchase of that machine how many workers still had a job? And if the government has spent that money how many workers would have that job? That loader most likely kept 20-30 or so people employed. The government can't think about employing or creating even one job with the different in tax money! So some would claim that say Wal Mart, who's gross profits are annually in the billions of dollars, is cheating the government out of a lot of tax money when for taxes they are only reporting under one billion. But how many people stayed employed or were hired with construction of new stores or involved in remodels? Simple answer is a lot more than the government would employ!

Rick

JBKINWA · Dec 10, 2016

New tech. The idea behind giving you all the new ways to control a machine is to make you more productive once your in the seat. The job as an operator is changing, but it will always require talent. Learning to set the machine up for yourself will always be intimidating if you don't read the book. Even with GPS, you still have to know your slopes etc.

As far as choices of brand goes, depends on how you want to spend your money and for how long. CAT built for decades, but they change the software so often that you are constantly paying big bucks for service or upgrading your capability. KOMATSU, A disposable machine for big companies, 12K hours or so then sell. BUT you get the best of support to maintain it in the field. They are also derated when sold in the US so dependability is pretty high. John Deere/Hitachi, Priced right but you never really own your machine as they withhold a large percentage of information from you so they make their money on service. I won't comment on the rest as I don't make a living with them.

Ray · Dec 10, 2016

Don't think 30000 would buy that?

john in la · Dec 10, 2016

JD
The 3 levers was not the problem.
It is the foot swing that gets me.
Same reason I have problems with a friction crane.
I can scratch your back with hand levers but put the lever in a foot pedal and I have problems.

Butch(OH) · Dec 10, 2016

Nope, just a few cents shy of 400K

My new loader

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Member

Well-known Member

Well-known Member

Well-known Member

Similar threads