IRS Depreciation Years on a Tractor

   / IRS Depreciation Years on a Tractor #1  

JOHNTHOMAS

Super Member
Joined
Apr 14, 2008
Messages
7,724
Location
Somerset, Ky
Tractor
F2690 4WD RTV X1140 MX5400 HST ZD1211
Those of you depreciating your tractor for business use: How many years are you using on your tax schedule?
 
   / IRS Depreciation Years on a Tractor #3  
If you can set it up as a business use the sect 179 depreciation schedule which allows 100% in the first year.

That is correct. But beware when you file your state return, they may not allow it, so don't assume they will.:eek:

Deano
 
   / IRS Depreciation Years on a Tractor #4  
It should not be a problem in Ky but you will have to list it as business equipment with your County PVA and you don't have to use the 100 % if you don't need it you can spread that over a few years.
 
   / IRS Depreciation Years on a Tractor #5  
Please check with your tax preparer. You can only take Sec 179 depr to the extent you have income from your business. If you have a loss you can't take it(in some cases if you have W-2 wages you might be able to if you are a sole proprietor or file Sch F). You may be able to take the 50% bonus depreciation if the tractor is new, not used.
 
   / IRS Depreciation Years on a Tractor #6  
If you can set it up as a business use the sect 179 depreciation schedule which allows 100% in the first year.

Check with your tax preparer on this. Based on current and expected future income it may be beneficial to depreciate the tractor over a longer period instead of all at once. Also if you sell the tractor early you might be required to recapture the deprecation. Just my opinion.
 
   / IRS Depreciation Years on a Tractor
  • Thread Starter
#7  
Me and Turbo Tax are my tax preparers. I was a state auditor in a past life:) and used to prepare taxes for people but it's a time consuming business which I stopped doing years ago. I have property rentals all at one 3+ acre location where my F2680 and B3200 (newly purchased in 2009 with receipt of purchase price in hand from Barlows) are located. Business purchases don't have to make GOOD sense, you just have to buy STUFF, use it for income producing and have a receipt of purchase and some way relate it's use for the business. I'll double check but I don't think I can do the 179 for property rental income, I believe it has to come from earned business income which is different than rental income. The number of years for straight line depreciation is what I'm hunting for. There is a schedule which lists hundreds of items published by the IRS which lists lifes of individual "stuff" used in business. I'm guessing 5 or 7 but I can't find "tractor" specifically listed. I was hunting for someone else using a tractor for business to see how many years they use for the depreciation deduction. I should have been more clear in my original post but I figured there were a bunch of tractor users for business that would pop out the instant 5 or 7 years number. I appreciate the responses that were submitted.
 
   / IRS Depreciation Years on a Tractor #8  
Hey John, maybe Lawn King will chime in, if not you might PM him. I'm sure he can answer your questions.
 
   / IRS Depreciation Years on a Tractor #9  
I'm using 5 years.
 
   / IRS Depreciation Years on a Tractor #10  
Me too, 5 years on the tractors. I do take the accelerated 179 option on some implements when needed.
 
 
Top