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  1. #1
    Super Member JOHNTHOMAS's Avatar
    Join Date
    Apr 2008
    Posts
    5,518
    Location
    Somerset, Ky
    Tractor
    currently own F3080 F2680 B2620 FEL/BH RTV1140

    Default IRS Depreciation Years on a Tractor

    Those of you depreciating your tractor for business use: How many years are you using on your tax schedule?
    2012 B2620 FEL BH, 2008 F2680 2WD 72" side Discharge Deck, 2012 F3080 4WD 72" rear discharge deck, 2010/2009 RTV1140CPX , RatchetRake, Forks, ...DEARBORN 2 BOTTOM PLOW 12" ?? FOR SALE $425).... Drawbar and Horse Drawn disk 13 Toyota Tacoma Double Cab, 13 Ford Flex. 2009 Subaru Impreza Sport

  2. #2
    Super Member two_bit_score's Avatar
    Join Date
    Dec 2008
    Posts
    6,828
    Location
    Texas -from the brush and pear to the piney woods
    Tractor
    110 TLB

    Default Re: IRS Depreciation Years on a Tractor

    If you can set it up as a business use the sect 179 depreciation schedule which allows 100% in the first year.

  3. #3
    Veteran Member Deano's Avatar
    Join Date
    Oct 2008
    Posts
    1,139
    Location
    Southern Maryland
    Tractor
    Kubota BX24

    Default Re: IRS Depreciation Years on a Tractor

    Quote Originally Posted by two_bit_score View Post
    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.

    Deano
    Deano
    2006 BX24, 6' New Implements rake, Woods RB60 rear blade, Wallenstein thumb, Bro-Tek rear skid plate, home made front skid plate, W.R. Long flat tooth bar, 4' finishing mower (TPH), 4' box blade, post hole digger, New style seat!!!!! Country Manufacturing manure spreader, Agri-Fab drop spreader.

  4. #4
    Silver Member
    Join Date
    Aug 2008
    Posts
    130
    Location
    Western Kentucky
    Tractor
    B3030 G1900

    Default Re: IRS Depreciation Years on a Tractor

    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.
    1992 G1900 60mmm 2500+ hrs., 2009 B3030 60mmm LA403 Fel/remote joystick 60 QA Bucket R3/Rimguard

  5. #5
    New Member
    Join Date
    Aug 2007
    Posts
    4
    Tractor
    Kubota MX5000

    Default Re: IRS Depreciation Years on a Tractor

    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.

  6. #6
    Gold Member
    Join Date
    Dec 2006
    Posts
    430
    Location
    Oakdale, TN
    Tractor
    Kubota M8540HD ROPS

    Default Re: IRS Depreciation Years on a Tractor

    Quote Originally Posted by two_bit_score View Post
    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.
    Kubota M8540HD ROPS, LA1353 FEL

  7. #7
    Super Member JOHNTHOMAS's Avatar
    Join Date
    Apr 2008
    Posts
    5,518
    Location
    Somerset, Ky
    Tractor
    currently own F3080 F2680 B2620 FEL/BH RTV1140

    Default Re: IRS Depreciation Years on a Tractor

    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.
    2012 B2620 FEL BH, 2008 F2680 2WD 72" side Discharge Deck, 2012 F3080 4WD 72" rear discharge deck, 2010/2009 RTV1140CPX , RatchetRake, Forks, ...DEARBORN 2 BOTTOM PLOW 12" ?? FOR SALE $425).... Drawbar and Horse Drawn disk 13 Toyota Tacoma Double Cab, 13 Ford Flex. 2009 Subaru Impreza Sport

  8. #8
    Elite Member ovrszd's Avatar
    Join Date
    May 2006
    Posts
    4,198
    Location
    Missouri
    Tractor
    Kubota M9540, JD2210

    Default Re: IRS Depreciation Years on a Tractor

    Hey John, maybe Lawn King will chime in, if not you might PM him. I'm sure he can answer your questions.
    Richard
    Kubota M9540, JD2210

  9. #9
    Silver Member tractorworks's Avatar
    Join Date
    Dec 2002
    Posts
    157
    Location
    South Mississippi
    Tractor
    B 2910 HSD, B2150 HST, G1800, Farmtrac 300DTC, Grasshopper 721D, JD 455

    Default Re: IRS Depreciation Years on a Tractor

    I'm using 5 years.
    tractorworks

  10. #10
    New Member
    Join Date
    Mar 2008
    Posts
    16

    Default Re: IRS Depreciation Years on a Tractor

    Me too, 5 years on the tractors. I do take the accelerated 179 option on some implements when needed.

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