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Won a tool, need some help deciding if i should pick it up

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Forum topic by harper_07 posted 641 days ago 1547 views 0 times favorited 19 replies Add to Favorites Watch
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harper_07

15 posts in 657 days


641 days ago

Topic tags/keywords: question

So i went to the Hartville Hardware grand Opening over the weekend. What an un believable store. I had been to their new digs a few times before but i am in awe every time i walk in.

I recieved a phone call this morning telling me that i had won their grand prize a $5600 Mark 7 ShopSmith. I am assuming it comes with a bunch of add on as the ShopSmith web site has them listed for just under $4000.

i have very few wood working tools at this moment but am gradually building my collection. I have a festool TS55 and MFT/3 as well as a router table with incra fence. I have a very small part of the basement that i use as my shop. I would never have considered purchasing a ShopeSmith had i not won one. The features i would use are: Drill press, Disk sander, Lathe (I have always wanted to learn to turn wood), horizontal borign sounds interesting.

My dilemma is this I am going to have to claim this as income on my taxes. so is it worth the additional $2000 in taxes.? Any idea what i could sell a new in box never openedmark 7 shopsmith?


19 replies so far

View Ryan Haasen's profile

Ryan Haasen

360 posts in 903 days


#1 posted 641 days ago

That is one cool tool, or tool(s) I guess. I have never seen anything like it.

-- Ryan

View sras's profile

sras

3611 posts in 1631 days


#2 posted 641 days ago

I guess it depends on your work style, but I have had my ShopSmith for nearly 30 years and still use it. You might get more responses if you put “ShopSmith” in your title.

Do you already have a table saw? If not, the ShopSmirh also works quite well as a table saw.

-- Steve - Impatience is Expensive

View TopamaxSurvivor's profile

TopamaxSurvivor

14402 posts in 2178 days


#3 posted 641 days ago

At one time there was a $10,000 gift exemption for gifts received. Not sure if there still is or if it counts in this case.

-- "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

View IrreverentJack's profile

IrreverentJack

722 posts in 1345 days


#4 posted 641 days ago

Harper, What a strange dilemma. Good for you to have thought of it before you pick up the prize. Here are Ebay Completed Listings for “Shopsmith”. You can buy a lot of Shopsmith for under $1200. Here is a Mark 7 on Craigs List a few hours from you with all kinds of extras for $700. Let us know what you do. -Jack

View knotscott's profile

knotscott

5151 posts in 1878 days


#5 posted 641 days ago

It wouldn’t be my top choice for a $5600 tool, but I’d definitely pick it up! Use it or sell it….

-- Happiness is like wetting your pants...everyone can see it, but only you can feel the warmth....

View shipwright's profile (online now)

shipwright

4665 posts in 1300 days


#6 posted 641 days ago

A couple of points:
1) ShopSmith is exactly what you should be wanting if you have limited shop space.
2) The new Mark 7 that you won has no connection with the old mark 7 (a dud) that wasn’t even made by ShopSmith. The new one has the new PowerPro headstock and has many advantages over any of the older ones.
3) if you want an idea of how useful a SS is especially in a small space check this out.

-- Paul M ..............If God wanted us to have fiberglass boats he would have given us fiberglass trees. http://prmdesigns.com/

View derosa's profile

derosa

1473 posts in 1338 days


#7 posted 640 days ago

Taxes also won’t be anywhere near 2k on it unless you already make a fortune and then the taxes won’t matter. You’ll be given a 1099 which gets put in as non-standard income so you end up not paying SS on it. Figure closer to 600.00 in taxes. Had to do this last year when I won a drill press.
600 for a nice lathe is a deal if it has that. everything else is a bonus.

-- --Rev. Russ in NY-- A posse ad esse

View DaddyZ's profile

DaddyZ

2332 posts in 1543 days


#8 posted 640 days ago

Congrats!!!!!!!!!!!!!!!

-- Pat - Worker of Wood, Collector of Tools, Father of one

View Alexandre's profile

Alexandre

1417 posts in 693 days


#9 posted 640 days ago

Send it to me…. PLEASE :-)
I’ll pay for the shipping :P

-- My terrible signature...

View JamesN's profile

JamesN

26 posts in 672 days


#10 posted 640 days ago

I agree with Derosa, the tax liability isn’t as large as you think it is. and as Shipwright said, for a limited space type of work shop this is the perfect tool.

Being able to have your tablesaw, bandsaw, drill press, jointer, lathe and disc sander be able to take up less then 30 sf of floor space is a huge benefit.

Also, just did a little research for you, it looks like the tax liability will be 25% of the fair market value of the unit, so if they didn’t add a bunch of extras and push the unit up in value, then your tax liability is 25% of what Shopsmith says they sell the unit for, not what the store lists the unit for.

The other thing is, if you didn’t have to buy a ticket (raffle) then you don’t have to pay the taxes when you pick it up, you will get a 1099 as Derosa said, and you just file that with your regular tax return. If you are used to getting a check back from Uncle Sam, then it will simply be reduced by the amount of tax liability the machine creates for you.

View DaveMu's profile

DaveMu

56 posts in 836 days


#11 posted 640 days ago

Congrats!

View TopamaxSurvivor's profile

TopamaxSurvivor

14402 posts in 2178 days


#12 posted 640 days ago

DaveMu, you need to fix the spaces around your !s. Pics do not show.

-- "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

View harper_07's profile

harper_07

15 posts in 657 days


#13 posted 640 days ago

Wow thanks for all the great responses. I was quite excited when i recieved the news that i had won. then a little less so when i heard i had to pay the taxes as income. So i think i have decided that i am going to go pick it up. I will post pictures and updates once i have it home.

View jumbojack's profile

jumbojack

1131 posts in 1126 days


#14 posted 640 days ago

I and a few others here use the Shopsmith. The one I have was a gift from an old friend. I love the SS. Once you learn your machine you will love it too.

-- Made in America, with American made tools....Shopsmith

View Paul M Cohen's profile

Paul M Cohen

83 posts in 2280 days


#15 posted 640 days ago

I just completed my upgrade to a full Mark 7, don’t confuse this with the $700 thing found on eBay. The new Mark 7 has a 2 HP DVR motor that can go from 250 RPM to 10,000 RPM, forward or backwards with full torque with just the push of a button. The 250 is perfect for turning large bowls and the 10K is for use as a Shaper (above or below the table). I am assuming it came with several accessories because the list is around $4K for the base machine.

-- Paul, Beaverton OR, www.TravelbyPaul.com

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