5030
Epic Contributor
- Joined
- Feb 21, 2003
- Messages
- 24,678
- Location
- SE Michigan in the middle of nowhere
- Tractor
- Kubota M9000 HDCC3 M9000 HDC
Not exactly. Fuel, replacement parts and consumables like filters, tires and lubricants are all tax deductible when you are in business. Same applies to any shop related expense.Typically, you depreciate a piece of farm equipment over a designated period of time so that once it is completely depreciated you can replace it with new. I depreciate everything over 5 years, buildings, tractors, trucks and equipment. Once it is depreciated, it is a dead expense.