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  1. #1
    Member
    Join Date
    Dec 2008
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    43
    Location
    Tennessee
    Tractor
    09 Kubota B3030HSD-F

    Default Tax write-off questions????

    My Question is about what I can write off on my taxes??, I work a full time job and file single/no dep. and take the staqndard ded., I have about 3 acres of land and basically all I do is mow the land, no profit from it, I recently purchased a new tractor in MArch of this year and was wondering what/how much if any I could write off of it or claim for a depresiation,

  2. #2
    Super Member dave1949's Avatar
    Join Date
    Apr 2009
    Posts
    9,492
    Location
    Industry, Maine
    Tractor
    New Holland TC40

    Default Re: Tax write-off questions????

    Quote Originally Posted by cgreenway View Post
    My Question is about what I can write off on my taxes??, I work a full time job and file single/no dep. and take the staqndard ded., I have about 3 acres of land and basically all I do is mow the land, no profit from it, I recently purchased a new tractor in MArch of this year and was wondering what/how much if any I could write off of it or claim for a depresiation,
    I think no write off unless your tractor was purchased in support of an income producing operation. Or an operation that could conceivably produce income in the next several years.
    Dave.
    "Those were the days my friend, we thought they'd never end ..."
    When there is a huge solar energy spill, it is called a "nice day"!

  3. #3
    Elite Member smstonypoint's Avatar
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    Oct 2009
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    3,839
    Location
    SC (Upstate) & NC (Piedmont)
    Tractor
    NH TN 55, Kubota RTV 900, Bad Boy Outlaw 61" ZTR

    Default Re: Tax write-off questions????

    Dave1949 is correct. FYI, the IRS publishes a tax guide for farmers.

    Publication 225 (2009), Farmer's Tax Guide

    Steve

  4. #4
    Platinum Member lakngulf's Avatar
    Join Date
    Oct 2009
    Posts
    760
    Location
    Lake Martin Alabama
    Tractor
    Kioti CK30

    Default Re: Tax write-off questions????

    I am glad you started this topic. I would appreciate hearing from those who use their equipment for side jobs, and therefore can count some expense, and of course realize some income from these tasks. My goal is to use my tractor and attachments for side jobs like food plot preparation, mowing, etc. but only in the future.

    I have just purchased the equipment this year (October). There will be no income producing jobs this year, but that is what I want to do in the future. I will comb through the publication mentioned above, but what advice do others have? Thanks
    Kioti CK30, KL130 FEL with Markham Toothbar, Land Pride 6' Mower, Atlas 6' BB,KK Tiller, KK Bushhog, Chisel Plow, Howse 66" Disc, 7' Spike Tooth, Hollow 300 Seeder

  5. #5
    Elite Member smstonypoint's Avatar
    Join Date
    Oct 2009
    Posts
    3,839
    Location
    SC (Upstate) & NC (Piedmont)
    Tractor
    NH TN 55, Kubota RTV 900, Bad Boy Outlaw 61" ZTR

    Default Re: Tax write-off questions????

    In my opinion, you should consult a good tax accountant.

    The IRS publication link is pitched to farmers who file Schedule F. I think you would be filing Schedule C (and associated depreciation forms, including Section 179) if your sole-proprietor business income is from providing custom machine services. However, note that the IRS says that "a sporadic activity or a hobby does not qualify as a business."

    Steve

  6. #6
    Silver Member
    Join Date
    Feb 2009
    Posts
    183
    Location
    NENC

    Default Re: Tax write-off questions????

    If you bought a vehicle for transportation to and from a place of employment you can often write off the mileage associated with employment. I have done that twice in the last 6 years.

  7. #7
    New Member
    Join Date
    Nov 2009
    Posts
    1
    Location
    CT and NH
    Tractor
    Massey Ferguson GC2410tlb

    Default Re: Tax write-off questions????

    Also consider that the tax rules cut both ways - you may become responsible for sales taxes, property taxes, or other fees by declaring you have this equipment. Checking with your CPA is good advice.

  8. #8
    Veteran Member smfcpacfp's Avatar
    Join Date
    Nov 2007
    Posts
    1,313
    Location
    Sands Township, Marquette Co, Michigan
    Tractor
    Kubota B3030HSDC

    Default Re: Tax write-off questions????

    If you don't use the tractor in a business you can deduct the sales taxes if you itemize, if the sales taxes exceed your state income taxes. There is a formula that you use to determine the other sales taxes that you pay on small things. It is conceivable that this additional deduction could make you an itemizer.

    If you used this in a business, you could deduct all costs associated with operating the tractor and depreciate the tractor.

    If you use it part business, part personal you would likely need to apply the hobby loss rules which means that you can deduct the business portion of your expenses (as misc itemized deductions) up to your income from this activity in a very specific order. You need to keep a log book of the tractor activities. Since you don't itemize, this would likely have the perverse effect of including your hobby income, but allow you no deduction for expenses. These rules are very complex, you should read about them.

    I am a CPA and CFP and former university tax professor (retired in May, 2008). I always use to tell people tha everyone would like to have uncle sam pay for a portion of their hobbies, but unfortunately he won't if you follow the rules correctly.

    In your case, as described, you are likely to get no tax benefit from the tractor.

    Steve
    Last edited by smfcpacfp; 12-19-2009 at 12:10 AM.

  9. #9
    Super Member two_bit_score's Avatar
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    Dec 2008
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    7,288
    Location
    Texas - from the brush and pear to the piney woods
    Tractor
    John Deere 110 TLB

    Default Re: Tax write-off questions????

    Quote Originally Posted by dave1949 View Post
    I think no write off unless your tractor was purchased in support of an income producing operation. Or an operation that could conceivably produce income in the next several years.
    Dave.
    Google sect. 179 deductions. it's pretty broad if you have any kind of business at all set up.

  10. #10
    Veteran Member carpenter383's Avatar
    Join Date
    Dec 2008
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    1,021
    Location
    Indiana
    Tractor
    Kioti DK40SE

    Default Re: Tax write-off questions????

    I'm also interested in the responses on this topic
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