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Tax implications of a shared machine

  • 02-03-2012 2:10pm
    #1
    reilig
    Closed Accounts Posts: 7,401 ✭✭✭


    Hypothetical stuff here!

    Does anyone here share machinery?

    How does it work and how is it put against tax?

    Lets say for example:

    My brother and I have decided to buy a round baler to use on both of our farms. The model that we have in mind costs €20,000. Its going to cost €10,000 each.

    Would it be normal that both of us would go to the dealer with a cheque each for €10,000 and that the dealer would issue us with 2 separate receipts for tax purposes?


Comments

  • #2
    pakalasa
    Closed Accounts Posts: 4,552 ✭✭✭pakalasa


    "In a less complete partnership, a machinery partnership could be formed where all (or some) machinery would be owned and operated on a partnership basis on the partner's farms."

    From;
    http://www.teagasc.ie/publications/ntc2000/paper07.asp

    I know don't know anything about it but, I'd be inclined to keep it as simple as possible. More like what you were saying.


  • #3
    vanderbadger
    Closed Accounts Posts: 3,087 ✭✭✭vanderbadger


    reilig wrote: »
    Hypothetical stuff here!

    Does anyone here share machinery?

    How does it work and how is it put against tax?

    Lets say for example:

    My brother and I have decided to buy a round baler to use on both of our farms. The model that we have in mind costs €20,000. Its going to cost €10,000 each.

    Would it be normal that both of us would go to the dealer with a cheque each for €10,000 and that the dealer would issue us with 2 separate receipts for tax purposes?

    ya id say both of you getting receipts would be fine. makes sense for you to have your own anyway when you have the rest of the gear


  • #4
    reilig
    Closed Accounts Posts: 7,401 ✭✭✭reilig


    vanderbadger wrote: »
    makes sense for you to have your own anyway when you have the rest of the gear

    It was just an example. My brother isn't a farmer and we're not buying a baler ;)

    I just want to know what the tax & receipt implications would be if i were to make such a purchase in this way!


  • #5
    vanderbadger
    Closed Accounts Posts: 3,087 ✭✭✭vanderbadger


    reilig wrote: »
    It was just an example. My brother isn't a farmer and we're not buying a baler ;)

    I just want to know what the tax & receipt implications would be if i were to make such a purchase in this way!

    right :)
    i should have read that a bit closer


  • #6
    lakill Farm
    Registered Users, Registered Users 2 Posts: 4,735 ✭✭✭lakill Farm


    Reilig,

    From my standing, a simple partnership is the best way. i would say most bailers for €20k will be financed so the bank etc would have 2 leases incease one lease is performing and the other isnt.

    A simple P & L and also you need to submit partnership tax return but its a simple process.


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