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View Full Version : Deducting ATVs?


Steve
02-15-2007, 01:23 PM
Do you have an ATV? Have you written it off as a business expense?

What's your view on this?

Tax time has farmers talking 'red flags' and lawn mowers (http://www.agriculture.com/ag/story.jhtml?storyid=/templatedata/ag/story/data/1171399685884.xml&catref=ag1001) - A deduction for an ATV should raise no red flags either, if handled properly. In another Farm Business Talk discussion, an Illinois farmer said he bought an ATV that will be used primarily for farm work, but worries about taking a deduction. "Does the IRS challenge this purchase as a depreciable farm business asset? Maybe it expects a farmer to depreciate only a percentage according to farm use verses play."

A Kentucky farmer chimed in, "I bought a new one two years ago. I financed it with Honda credit to help my credit record.... I have used the down payment, monthly payments, and interest as a deduction without question."

Moore agrees. "Basically, anything is deductible, as long as it is used in the business, and its use can be proved as to extent," he says. "If personal property is used in business, it must be depreciated to the extent of its use in the business. If an ATV is used in a business for only 50% of its total use, then that 50% should be subjected to depreciation."