Posted by LAA on April 04, 2012 at 10:01:46 from (86.51.147.113):
In Reply to: Re: Cash sale posted by Mike (WA) on April 04, 2012 at 09:23:34:
I get your point on income producing equipment. Another point is while the hay produced with the baler is fed to income producing calves the hay is actually an income offsetting expense because it is fed to the calves and the only deductions for home produced/raised calves is the actual expense of keeping their mothers and feeding the calves. In other words, if my home raised hay is cheaper to produce than boughten hay then I am realizing more net income and therefore paying more tax so my baler is actually making the IRS money, assuming that no depreciation was taken of course.
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