I know I'll probably be shutting down my MX/oval tracks in the next few years unless some miracle happened and I was getting 50 riders a day. That's not likely but a couple other tracks have shut down so there aren't many options. Anyway, I got a call from the gravel pit that has supported me almost from the beginning. They bought the farm across the road from me. Now they would like to buy my property the sooner the better. It's worth about $260,000 based on what similar properties in the county are listed at. I said I'd like to see how this year goes as it's my 20th year and I made some improvements. It is nice to have someone wanting the property. If I sell the property I don't really have a need for my equipment or a place to keep it. I'm sure I could keep it on the property for awhile so I don't have to sell it in a big hurry. Wondering how others retiring or looking to downsize would sell their equipment? It's older equipment but in good working condition. I'd guess about $100K worth and then I have a lot of tools I wouldn't really need. Sell it private, farm auction, Ritchie Bros., reserve auction, consignment or something like Iron Planet? I'm not sure if trying to get the best price would be worth the effort or not. I'm also not sure what I'd do to keep busy if I sold everything. Just looking for opinions on what others would do?
Unless you have to sell everything on a tight time schedule, I would just sell it piece by piece on FB marketplace or Craigslist, or whatever sales forum you guys have up there. I have never trusted auctions except for selling junk, seems like I remember you have had some sketchy experiences selling with them also . . .
Almost the end of an era for what sounds like a good run Dave! I imagine the emotions are tough.
If you want a fast sell and what you get out of it isn't a big deal a auction is the way to go . I think I am going to load a bunch of the better small stuff in a van trailer and rent one of the buildings around and have a auction to get rid of some of my Dads stuff.
Down here we have a couple of local internet auction companies, Purple Wave and Big Iron. Either will come out to your place and photograph, list, host, and advertise your items. I have sold on Big Iron and bought from both. Cost is in the 10-20% range, depending on total sale price. Well worth the cost to me. Surely there is someone similar on your side of the border.
Watch the taxes, if you dump it all at once, you are going to have quite a tax bill. Dumping it piece by piece over a couple years may keep you from paying more in taxes. I am not a tax advisor obviously, but I would talk to your tax person on their thoughts.
Its a deal getting rid of stuff a person has to figure do i want get rid of it or do i want to make money? I want to get rid of stuff but i haven't found the easy way yet .
Sell items that fit together as lump sum on FB market place.
Start out listing on FB MARKETPLACE. Whatever you sell that way will probably be for cash. Maybe beat some taxes.
Ritchie's has a large auction here next month, but I trust them about as much as the government, their auctions are badly rigged, although most prices were strong last sale. I'm selling all my stuff right now and doing it on Kijiji, it's a absolute nightmare, but in the end you control the selling price, not some big company trying to rip you off. I've done ok prior at Michener Allen though depending what you're selling, not sure if they've changed since getting bought out by a bigger company. Clubbid is also a decent option, only sold really minor stuff there but there were good, I believe reserves are an option there.
Thanks for the responses. I don't think I have to worry too much about taxes. I don't have a limited company and other than the skid steer I bought the other equipment outright under my own name. The tractor I inherited. It will be the hardest machine to let go. I think everything has been depreciated as much as it could several years ago. The auction company I had issues with basically stabbed themselves in the back. Had they been even the least bit professional I'd talk to them when the time came. The owners eye's lit up when I said I had a grader... and other equipment. I'm not in any hurry to sell. I was thinking I'd try to sell stuff myself first. Tire kickers can be a pain though. Some on-site auctions get decent prices if they advertise heavily. I have to consider the commission too. Getting a little more money but then paying the commission negates the higher selling price. Reserve auction might be good compromise. My equipment being older is probably more geared towards farmers or land owners than contractors so maybe a farm auction would be the best bet?? Lots of things to consider.
For sure! It's not easy to think about ending what was started as a dream. I'll feel bad when the few people who appreciated having a place to ride have to find somewhere else. I wish the guys interested in the oval track would make up their minds if they want to develop it further. I can't wait years for them to make up their minds.
I'm not sure about RB's. Why are you selling all your stuff? I thought you were pretty busy.
I've had decent luck with Iron Planet Market Place. Sold several things through them.
Is there much demand for older equipment in good running condition?
I hate trying to get rid of the stuff my Dad has . I bet I will be at least another year. So far if I sell something and break even I have done good. I gave one of the semi van trailers to a buddy that was a good deal. I am getting rid of some stuff I have too during this clean up. I fill like writing a book about getting older leaving a bunch of stuff for your family to have to deal with.
Depends on what it is.
If you sell put some wording that you can park your equipment there for up to a year to try to sell it, then what's left auction
I'm sure they'd let me keep it there for awhile but not in the pole shed. Here's a list of the bigger stuff I have. The tractor is the oldest but a very desirable model. I also have various 3pt. hitch implements, some like new and a 94/95 Yamaha Big Bear 350 quad and trailer. 1965 ** 135UK. 3 cyl. Perkins diesel with working 12 speed multi-power trans., loader with blade and bucket and cab off an MF20 industrial tractor, very good rear tires, chains, 5000hrs. 1986 Cat 931B track loader with factory quick attach backhoe, 4 in 1 loader bucket with teeth and bolt on edges, approx. 1500 hours on new undercarriage, rebuilt engine with 3 ring IPD pistons, rebuilt steering clutches and brakes, 5800 hours. 1986 Champion 730A grader with ripper, like new rear radial foam filled tires, 16' moldboard (2' extension was welded on), new serrated blades, Cummins 8.3, new seat. Hours unknown but starts and runs excellent. 1994 Thomas T133 skid steer loader, Kubota V1902B, comparable to Bobcat 743/753, built in Canada, both drive motors replaced, new glow plugs, like new tires, 3 good buckets (smooth, tooth and snow), 1 bucket needing rebuilt, 4500hrs. Most service records, original owner, runs like new. 1994 Ford L9000 dump truck, Cummins M11, 9 speed trans., heavy spec. with 16K front axle and 40K Hendricksen walking beam rears, double frame with minimal rust and no rust jacking, dual steering boxes, 15' box with air trip gate, replacement speedometer, new steer tires, good rears except 1 has a patch. 1995 GMC Topkick with 16' grain box and hoist, 6.0L gas engine. Good tires, runs great with under 200,000 kms., used as a water truck with or without 2000 gallon poly water tank, box is rough.
I take it you don't live on that property. Be expensive to pick up and move.
I'm not sure if that's a big concern if someone is looking for a particular machine. I think the track loader with a backhoe would be of interest because you don't see too many of them, at least in good condition. Buyers could demo the equipment better than at an auction yard too. I might be able to arrange for trucking within a reasonable distance.
Sorry I meant it would be expensive for you to pick up and move to a new home if you live there. Housing market is crazy
I'm tired of the BS doing excavation/demolition full-time so going more towards home building. My equipment has hardly been used the last 2 years so it doesn't make sense having so much money tied up and sitting. So going to sell both hoes and trailers and just get 1 mid size one, dump truck I sold yesterday and did ok.
If there is a upcoming farm auction in the area, you can sometimes list your items in conjunction with it. The larger the sale, the larger the buyers plus the commissions charged at the farm auctions are sometimes less.
If you have the time, perhaps you could link up with a couple of brokers and get them to do some nation-wide advertising for you. They will do comps and list it for a slice. I would guess selling across the border might be a hassle though.
Where are you located at Dave?
I'm in Alberta.
The Texas of Canada
Alberta has much more oil. More than Saudi Arabia if you count the untapped reserves. There seems to be new technology to extract more oil all the time.
That's why it's called oilberta
The really sad part is Alberta could sell a lot more oil and gas overseas if Ontario and especially Quebec would agree to a pipeline. Quebec imports 60% of it's oil which is a travesty considering Canada has more than enough oil. Pipelines are much safer than rail transport and much more efficient in getting oil and gas from point A to point B. They are at least reconsidering pipelines now with all the tariffs and uncertainty going on in the US.
I got another call from the gravel pit today. They really want my property. Maybe??? they could put a road through and I could keep the track and they could purchase the property a few years later. They said they'd pay a premium price for the property. Another guy was helping me figure out how to get more riders this year. I had another idea that maybe they would let me use/rent about 10 acres in the field across the road to make a new track. That could be a good deal because the field has about 5' of sand on top. It wouldn't be affected by heavier rains nearly as bad as the existing track and would be good for spectators. If I don't sell they might not be interested in a few years as they would have made other plans. They bought the property West of me about a month ago. That's why they want my property to put a haul road through. Lots to think about for sure.
Friend of mine's father sold the family farm to Martin Marietta around 15-20 years ago. Stipulation in the sale was the family could use the farm including the house, barns and fields for a set period of time. To this day my friend still cuts hay, grazes cows and one of his employees lives in the old farmhouse on the property. A little different situation as Martin Marietta wanted the property for a buffer to their cement kilns and quarry but still something you may be able to negotiate on a shorter term.
Well I certainly can't get rid of my equipment and clean the pole shed out in 30 days. If I could get enough land to build another track for 3 to 5 years could be a good compromise.
Just curious, since you aren’t riding, what is your fascination with a dirt bike track?
Dave, It hard to know what to suggest to you since we don't know what is going on in your area. Is this property you have easily replaced with the money they are offering. That is the first question. From reading your words it feels as if you worry there might not be another buyer around. If you just sell to them without putting it up on the open market you might not ever know it's real value. You might be getting way over market or under market value with their offer. I also wonder about Harleys question. Why do you want to build another track? It does not sound like it makes money. Could it be you can do it better the second time? I see you are considering selling all your equipment. Sounds like you are on the fence. If you don't sell out and you keep what you have and you don't ever sell will you be happy with what you have and can you live out your life without much changes? Selling, moving building a new track and what all is a lot. Sounds like a whole lot.
Fascination=if ever watched a old movie on the subject {On Any Sunday}. I suppose in Dave's case it lends a place for those who live to act out their own On Any Sunday. Motor sports of most any type is a popular spectator sport, and for many who don't necessarily participate but work in the back ground another avenue.
The quarry wants your property, check with a realtor and make sure it is a fair offer first . Then make a list of the price you think is fair for the equipment. Not a sky high, but fair price . Add that equipment price number to the sale price of the property, and tell the quarry it's one price , property and equipment included. They can deal with selling whatever they don't want. If that doesn't work, your equipment being allowed on the property, for six months after the sale to allow you to sell it, would be a alternative. But it would sure be easier to sell equipment and property, all in one shot. I think with your health issues, the quarry offer sounds like a great way to get out from under all the work of your track and equipment.
Thanks for the replies. Having a track is kind of the same as riding a dirt bike. Contrary to what some think, riding a dirt bike and doing jumps and stuff isn't a death wish. It's doing something not everyone can do and is exhilarating and exciting. People do specific jobs for kind of the same reason. When you can transform a bare piece of property into the foundation of a shopping mall or fully transform a yard into a landscaped masterpiece is very rewarding for most who do it. They say doing something you like is half the battle. I think it's more than that. When you enjoy what you do is also great for your well being. You're happy and even excited to go to work everyday. If you have to work late or do overtime is just part of the fun. Some people are very lucky and find their calling at a young age. Other's can spend decades doing different jobs and never really find their true calling. This makes some people bitter and miserable. It also leads to depression and other health issues. When I bought land to build the track it was kind of a dream fulfilled. I did track prep. on one the most famous tracks in Canada and got a lot of compliments. Riders would come knowing I did the track prep. They even set attendance records when I did the track prep. I even did the track prep. for the Canadian nationals for 2 years. There were several tracks and places to ride shut down in the early 2000's so I thought building a track would be really welcome to all the riders. The club I did most of the track prep. for unfortunately got a new president that didn't really acknowledge the history of the club or the people that made the club the success it was. I did the track prep. for peanuts as my contribution to the club. After I built the track the new president wasn't interested in it. He lived close to another track that wasn't even open to the general public or even the club for practice. Only time you could ride it was at an event. I still went to club meetings and asked why the club isn't interested my track. To say I was shocked at the presidents arrogance is an understatement! He said "You're a promoter now and you can't just expect the club is going to come to your track". Wow!! On the clubs web page a few riders who did come out loved the track and said others should check it out. Even the most famous member of the club who was one of the primary founders of the club. He went on to win the world vet championship 12 times! Someone actually responded that if the club isn't supporting Dave's track then I'm not going to either. Another wow!! I thought if someone doesn't like me fine don't come out but to not come out because the president of the club isn't supporting ithe track is just stupid. You might actually like it. I was pretty bitter about it. One founding member, who's wife was the greatest lap scorer on the planet, told me that the way they decide where to put on events is BS! I did get a couple small events, one being a snowman race where the snow is cleared off the track and the bikes run special studded tires. The track was absolutely perfect and the riders loved it. Only problem was only 16 riders showed up. They did say that anyone who didn't come really missed out. Fast forward about 15 years and this former president is running a vintage MX club. Out of the blue I get an e-mail asking if I'd like to put on a vintage race. I literally almost fell out of my chair. The race was put on and the riders really liked it. I whole heartedly believe this was an apology for treating me like I had the plague and not supporting my track. I had a vintage race scheduled every year after that except last year. Last year was odd because the year before the majority of riders said I had the best event. I was quite upset about it because another track that had been dropped for a couple years by the club suddenly was back on the schedule and getting preferential treatment. Turns out the new president of the vintage club lived close to this track and was friends with the president. I can't win. Part of the reason I've stayed open is to say f%$! you to the people who didn't support me. I feel like such a smuck doing track work for the one club for peanuts for 10 or 11 years. I went to a club meeting and they were discussing finances. It was brought up the club owes $5000 for track prep. The founding member who's wife did lap scoring patted me on the shoulder and said it's OK. He knew. I asked if it was for the full year and was told no. Holy ****! I got paid between $400 and $600 to do track prep. for an event. $5000 would have covered 3 or 4 years of track prep. Back when I did it, I was always the first one they asked if there was a way to lower track prep. costs. It seems like I should be the poster boy for nice guys finish last. Sorry for the long post. I thought people might understand better if they knew more of the story.
Than you for that detailed response. I think now I understand. I have had my own club issues and now I could care less about the club that I helped start but I do still miss the club atmosphere and I was the hero, that always got the job done. Or so I thought.
The track I did all the prep. at was practically my second home. I thought I had a lot of friends in the club but apparently not. The new president had the most to do with the club not supporting me though. I guess I can take pride in the fact that I found land to build a track and had it rezoned specifically to run an MX track. I think that would be next to impossible to do today. People generally think anyone who rides motorcycles are in a gang and up to no good. A snowmobile track wouldn't have near the whining from other land owners.
I got an estimate to replace my pole shed and it came in at $80,000 incl. tax. for materials and labour to build it. Pretty much double what I paid in 2015. Labour was $30,000 which I think is a little high. It is like new but I'm not sure if a pole shed appreciates or depreciates in value. Obviously if it was really old and showing its age would lower its value quite a bit but it's like the day it was completed.
I'm not a tax expert myself BUT I would NOT worry about any income from the sales of used equipment since chances are you paid more for it when it was bought earlier in the equipments life .... in fact you might be able to claim a LOSS in income for the year to help you offset your current year's income .... If played correctly, almost no self employed person should have to pay taxes ... OK big claim BUT ever see news stories where big companies make billions but pay little or no taxes ? ... same idea
I don't think the equipment will figure in any taxes. I'll probably have to pay some capital gains tax though. I'm not sure if business losses account for anything.
It works like this. You pay for a piece of equipment. You depreciate it either 179 or over a number of years. Once you sell it, it becomes income. So if you paid 100k 5 years ago for that machine, you sell it for 50K today. That shows up as a 50K addition to your income and its all income. That is how you can end up in a tax mess.
I'll have to talk to the tax people.
^^^Some of our older trucks/equipment we no longer put “on the books” for this very reason….
That’s a good idea, as it could prevent negative tax implications..
If you plan it out, the same year you sell can be the year you get a new truck, or a new machine for another write off. Balances out. In the US we have a 10-31 exchange for property to help us. A middle man receives and holds the sales proceeds (cash). Then provides the funding for another property purchase. You pay a fee typically 1000.00 to 1500.00. You pay zero gain. You only have so many days to complete the deals and to identify replacement property. On your primary residence you are sheilded on the first 250k profit 500k if married if you have lived in it 2 years. So if I was going to sell the quarry my property, I would already have a replacement lined up. Or make the deal happen when you do. Also in the US when you 10-31 into a new property your basis starts over with the purchase of the new property. On rentals this is great because you now get the current deprecation for the higher price. This saves you 1000s in taxes. It actually setup so that it is in your favor to sell and replace. Biden was trying to strip that from us. Remember to plan it out from start to finish.
Canada taxes are different, also depends how you claimed the equipment, I always lease the equipment to my company that I do the work under. A little birdie told me if you sell it in cash or partly cash you can claim the amount it sold for as lower then what you actually got to avoid some taxes, also being in canada you have to charge 5% GST. Not like i'd do anything like that though
Yes, you guys in Canada surely have different rules. That said, I doubt you can sell a piece of your equipment without claiming it as income. If you can, I will start lobbying for Idaho to become a Province of Canada
And add in the building, or maybe it was. Bet they'll pay a fair price for it all. Figuring out your next adventure might be harder. Be nice to be appreciated if your doing service work.
The building was part of the deal. Sounds like I might be able to still use the shop indefinitely. They don't really need it. This would great if I could store my smaller equipment over winter.