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Tractor Talk Discussion Forum

Taxes and buildings

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Dan-IA

02-11-2008 15:28:26




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So it's a snowy day in the middle of the winter. And while I'm sitting here trying to swear off chasin' wild women that spend all my money, I'm dreaming about building a workshop.

Now I'm tight and think it'd be cheaper to heat a small shop than a big one. So I was thinking if I build it myself on 8 foot centers, go about 16 feet high to the bottom edge of the roof, and maybe build it about 24x32, that should be big enough to have a bench in it, put in a service door big enough to get in a combine or an articulate tractor like my 4-150. Then depending on how finances and time go we'd insulate it first, maybe put in a concrete floor, etc. My eventual goal is to be able to work while it's zero out like today, rather than sit here.

But what I want to know is, can I write it off my taxes? I figure if I build it it myself and intend to use it for farm work I can write off building costs as "supplies". I know it'll probably drive up property taxes.

Now my dream machine shed... You can never make that too big! (But that's not heated and has a dirt floor.)

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Walt Davies

02-12-2008 10:35:30




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
You can only write off things that don't add to the value of the property since the shop does just that there will be no write off. If you add tools and such that are not bolted down they can be written off.
Walt



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Iowa Bob

02-12-2008 08:26:56




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
On the size of a shop? I have a 36'x72' round rafter barn, we took the haymow floor out and added a 20' Wide by 16' High overhead door in the end. I think if I were building a new shop it would be for sure 36'x48' with heat in the floor and well insulated. Just my opinion.

Bob



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super99

02-12-2008 05:58:45




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
Shop is like a machine shed, always wish it was bigger. Go with whatever size your comfortable with but leave room to expand. Find someone with heat in the floor and go over on a cold day and check it out. It's the only way to go. Chris



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paul

02-11-2008 21:57:18




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
Taxes: You are supposed to depreciate it over the life of the building, different that as supplies. What you get by with and what you do - that is up to you.

Size: I am like you, and dreaming too. You mention 'combine' so I suggest you make it a tad bigger than you have it. Most combine heads are 20 feet these days, if like me you don't have that now, you might in the future. You got a lot of hieght, you might as well have at least a 16 foot wide door. Building needs 2 foot of shelf & 4 feet of working room on each side, so 16 plus 6 plus 6 is 30 wide, and measure how long a combine is, or you ever want to pull an implement in with a tractor - you need it 40 feet deep and that means you can't store anything on the front wall at that.

You just can't work in 24 feet wide, with cambine & shelf & tools, no room to swing shields away, work, etc.

Would be nice to have a small simple door to get a pickup or medium size tractor out the opposite side of the big door. Can be a slider you insulate up real well semi-sealed shut, but just nice to be able to drive through a shop pulling something in if the need arises.

I have a 28x36 wood frame building that I'm debating if I insulate & turn into a heated shop. Would need to enlarge doors. Biggest problem is height, I don't know that I can easily get to 12 feet high. All my stuff fits inside an 11 foot door right now, but - future always brings higher, not sure I will be comfortable with a low shop..... Little small, but like you, hate to spend too much on heat, etc.

--->Paul

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tractormiallis

02-11-2008 19:18:54




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
Make it big enough for 2 doors as one door is a pain to get in and out of as far as parking equipment in. Maybe a large door for combines on an end and another smaller tractor door on the side? Just an idea. Cheaper to make it longer now than to have to come back in 5 years and add on or something, and always plan to add on so choose the site wisely.



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JMS/.MN

02-11-2008 19:02:15




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
If you have a legitimate business or farm, the cost of the building is either depreciated over its useful life, or expensed in the year of erection under Section 179. You can pick one or the other- if you expense it in the year of purchase, you do not get depreciation on it- you already took it all. Dollar limit is close to 200 grand now.



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TractormanNC

02-11-2008 17:50:07




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  

Had an 856 cut into three pieces to replace the TA in a 20x20 shop. Man was that ever tight.



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DW in indy

02-11-2008 17:49:09




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
I agree you can't build it big enough. No matter what size you build some day you will say you should have built it bigger. Built my 24x24 "dog house" with 100 amp service cable tv stero fridge Reznor 30000btu propane heater 3 1/2" fiberglass in the side walls and 15" celulose in the attic. I keep it at 55 degrees during the week and 70 on the weekends and figure it will cost me about $600.00 to heat it this year and my taxes went up around 125.00 a year. Won't break the bank but it's just another bill to pay and something to think about. But I sure love it at times like this.

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ben brown

02-11-2008 17:13:54




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
my shop when i first build it starter out 36x30 decide that was not enouh room put 10 ft extision on each side for tool bench office and catch all. so has a 30x36 work space have a 4255 and a 966 doing transmission on the ih and engine overhaul out fram on the 4255 and the 966. is enough room but bit tight have 12 ft hight. now if i was redoing it the first thing would be heat in the floor. if you keep your feet warm your warm. i am building a 40x60 14 ft wall well be for keeping my trucks tractors toys and junk dry. gravel floor right now. my bother in law and i were putting his jeep under the roof {freezing rain right now} still building have roof up no side medaal yet we both looked hell could ues nother 60 ft. some of the farmer i do work with have monster shops sill not enough room i dont think one could build a shop big enough. i would say the 36x30 is bear miniman. now that uesable work area. so you would need more space for what i call good stuff.

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Dan-IA

02-11-2008 17:14:30




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
I'm thinking something just large enough to work on one piece of equipment at a time, in order to be able to heat it without much hassle. Biggest piece of machinery we have is the 4-150, unless you count the sprayer with the booms out.

Pick something too big and I don't know I could put it together in a year or so, building it myself.



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Gene Dotson

02-11-2008 16:50:20




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
Dan;
My shop is 24X30 and is too small. Once had a shop that was 32X30 and was the perfect size for me. You can build length cheaper than width.
You will be able to put this on your depreciation schedule and depreciate it over time on your taxes. Yearly property taxes will be the only downside. My 42X72 barn raised my property taxes $500.00 per year... Gene



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luckydog

02-11-2008 16:33:47




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 Re: Taxes and buildings in reply to Dan-IA, 02-11-2008 15:28:26  
Dan- Just looking at your plans for your new shop and was thinking that a normal two car garage that you park your cars in is 24 by 24. A nice size garage (two car) is 30 by 30. I would think by the time you put all your tools, plus a work bench, plus all the misc. things in the shop that you would be mighty cramped for space. Get my drift?? Bill



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