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FREEDGUY 
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Joined: 15 Apr 2017
Location: South West Mich
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 Topic: Dad is Torn
Posted: 04 May 2022 at 7:10pm |
He's not sure whether to "piece meal" his line of equipment or have an "absolute" auction. What would you guys do and I'm interested in what Shameless has to say on this topic 
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CrestonM
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Location: Oklahoma
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Posted: 04 May 2022 at 7:36pm |
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If it were me, I would probably sell things off one of the time, so as to not put you in a much higher tax bracket.
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FloydKS
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Posted: 04 May 2022 at 8:01pm |
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probably advantages both ways. The auction is "over and done with" and you are not stuck with a lot of work over a period of time. Doing the "one at a time" thing means you have time to do it............. maybe the factor is which gives you be best return, and that probably has different opinions too. I do not have anything to sell but am kinda curious what some of the answers will be.
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Holding a grudge is like taking poison and expecting the other person to die
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acjwb
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Posted: 04 May 2022 at 8:22pm |
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With the auction it is over and done. The next morning you wake up to the shock of "where is my equipment?" Selling it by the piece, It sells over time and the shock is not nearly as bad. Plus I think the return will be better by the piece and as stated earlier, the tax would not be as bad.
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Dakota Dave
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Posted: 04 May 2022 at 9:54pm |
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The piece at a time will get you a better price on the most desirable easy to sell items then you could be stuck a long time before selling everything. An auction draws more buyers if you have those desirable profitable items every thing goes at once and it's all out of your way. We've had to haul stuff to other farms and add to an auction just to get rid of it. Most of it sold for a fair price when no one would even come look at it for sale by itself.
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DMiller
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Location: Hermann, Mo
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Posted: 05 May 2022 at 3:37am |
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Cannot offer advice here as we have no children we rely on nieces and nephews for our final dispersals where do We do the dump all at once and move to smaller digs paying the ROI taxes or leave the kids to deal with it is always on my and the wife’s mind.
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Tbone95
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Location: Michigan
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Posted: 05 May 2022 at 6:39am |
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I think when my time comes, it'll be auction time. You're "supposed" to report the sale of equipment as income even when you do it piece by piece, though a lot of people don't report or under report that figure. For me, would be a higher total tax that year absolutely, but bracket / percentage basis / overall total wouldn't be much different AND you'd then have the money to do with as you please. But the biggest thing........can you imagine the hundreds of idiots you'd have to deal with? That'd be too much of that for too long a time for me. Pros and cons for sure.
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AC7060IL
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Location: central IL
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Posted: 05 May 2022 at 5:27pm |
Creston's Tax advice has some merit.
For what it's worth-
Depends?????? Here's some other ideas to consider.
1.How "Numerous" the items - 5-12? or 30-50 plus small items? 2.What "Big" items? Tractor,combine,planter,tillage,sprayer,trucks,wagons,baler, etc... 3.Modern or older "Era" items? 1960-1990? 1990-2010? 2011-2022?
4.Hire a Local Auctioneer for an attendance/internet auction? "Combination" or "solo" auction? If (5-12 items), it may be best to combine them with another similar(older/modern) grouping for auction? If (30-50 plus items), it could probably be a solo auction? Auctioneer charges a commission for such items such as, but not limited to:advertising, great photos, previews, phone calls, sale day, liability, accounting, Load-outs, portapotty, follow ups...etc?????????? Crowd at your farm on sale day? lots of trucks/trailer for load-outs end of sale day/next few days? Messy weather means messy grounds? Less headaches? quicker? Good auctioneer business usually list "details" where guidelines/limitations are printed(payment options, payment duedates, load-out days, left items, etc....
5.Hire an Internet auction site, online only? Probably similar to local auctioneer, but no sale day crowd at your farm?? Unless you move all items to an auctioneer site, then you still have previews & load-outs at your farm.
6.Craigslist.org? YOU DO IT. No charge to list it. TAKES TIME TO DO IT RIGHT THOUGH. DETAILS are so important...Need PROPER editing LISTINGS(Allis-Chalmers, not AC, not Alice, not Chambers, etc..)Great photos(good resolution/video(too HD photos may not load or take too much time to load. Videos-keep brief per areas of interest. Lots of videos waste over half of their time watching operator staring at videographer for signals), good lighting, READABLE serial number ID plateS(engine&machine!!), photoed item fills the entire photo frame, hours/clock, tire sizes/condition, issue spots, dual/single pto, top link included, manuals included, duals included, spare parts included, etc..........?????
List it in the "All items for sale" & "farm category". Which town(s) will you list it under??
Heres a big one - LIST YOUR MOBILE NUMBER for calls & texts INSIDE THE BODY OF THE LISTING. Use combination of numbers & characters like (Two 19)Two 62- &&&&.
7.Facebook marketplace? YOU DO IT. MAYBE Similar to Craigslist, but maybe more social numbers? General & Specific Groups per items...??
8.Consignment Auction? Reserve price - need I say more?
9.Classifieds in local paper? fees for add - need I say more?
10.Classifieds online? specific, like here on forum. Could be good?
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FREEDGUY
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Joined: 15 Apr 2017
Location: South West Mich
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Posted: 05 May 2022 at 5:44pm |
Thanks for all of the replies gentlemen  !! The "tax" issue is a "non-issue", dad is as honest as the sun rising in the east ! |
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DiyDave
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Posted: 05 May 2022 at 7:42pm |
 FREEDGUY wrote:
Thanks for all of the replies gentlemen !! The "tax" issue is a "non-issue", dad is as honest as the sun rising in the east ! |
I didn't see anyone trying to do anything dishonest. There is nothing "dis-honest" about arranging your affairs, so as to pay a lot less in taxes, than if you do it another way...
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200Tom1
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Posted: 05 May 2022 at 7:53pm |
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Dad never had an auction. He sold the tractors 1 piece at a time. Same with the more modern stuff. The Allis snap coupler stuff sat around until it was all stolen a few years after he died.
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Tbone95
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Posted: 06 May 2022 at 6:18am |
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Yes, Creston’s tax advice has merit. As stated, it depends. I meant that for me it wouldn’t likely be a swaying issue, one needs to fully understand their current situation and analyze what actions have what effect.
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FREEDGUY
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Posted: 06 May 2022 at 5:03pm |
[QUOTE=Tbone95]Yes, Creston’s tax advice has merit. As stated, it depends. I meant that for me it wouldn’t likely be a swaying issue, one needs to fully understand their current situation and analyze what actions have what effect. [/QUOTE Thanks for the clarification
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shameless dude
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Posted: 06 May 2022 at 9:28pm |
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when i quit the farming thing...i thought about an auction...like said above...everything is gone and done with....but...i worked really hard with sometimes 2-3 jobs so i could have good equipment to work with, i just wasn't ready to get rid of it all real fast! i still use some of the equipment around here, and have sold/traded some of the other stuff off. Plus i didn't want all kinds of people walking around snooping and stealing what i wouldn't put on the sale. call it some retirement cash spending money! i'm still selling some off and prolly will be for awhile. some things i have parted out so other equipment can still live! most of my stuff isn't shiny anymore, and according to the stockholders it's all junk because it isn't green! F*** them! my equipment still does what their hero's equipment does and the cost isn't there like theirs is. tell your Dad that you'll help him in which ever he decides to do! you might get a surprise!
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klinemar
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Posted: 06 May 2022 at 10:00pm |
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I know of several people who sold online auction and were very satisfied. Before you decide how you are going to sell talk to a tax specialist with knowledge of Ag. The person should be able to advise on tax sale with regard to depreciation and capital gains.
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JC-WI
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Posted: 06 May 2022 at 10:36pm |
Why don't you just offer to buy your old man's pleasures on a time payment plan and he doesn't have to decide what to sell or how since he can still play with it all till he is finished here.  
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He who says there is no evil has already deceived himself
The truth is the truth, sugar coated or not. Trawler II says, "Remember that."
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FREEDGUY
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Posted: 07 May 2022 at 9:47pm |
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. The tenant of dad's place is 100% green equipment, I stay away from the farm in planting/harvesting seasons to avoid heartache 
