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| The lower tax bracket only covers cost of living. You need to look at effective tax rate, and how that effects your working capital / equity.
Guys buying millions of dollars of equipment they don't actually need to offset paying tax are just robbing themselves. You have to look at your taxable income / working capital / equity and if those numbers aren't better than the opportunity cost of doing something else you have to want to make some changes and look at where you are headed. Of all of the people getting money off of the farm the farmer has to make sure he gets paid. You can't build equity buying inflated depreciable assets. Yes equipment is needed but look at what new sells for today and take a look at auction sales and see what it is really worth. | |
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Rabo predicts more profit loss
