Anybody have any luck writing your ATV off your taxes as a working tool or farm equipment? My tax man thinks it will send up a red flag with the IRS , you have to prove it’s a working tool for your business. How in the %&#@ do you do that!! You can write off a million dollar boat, but not a couple of ATVs. I don’t get it.

 

hausdog

Writing off your atv against your taxes is legal, but like your tax mans says, it will probably prompt an audit from the irs. As long as you can prove that you are indeed using the machine for mainly business use, then you should not have problems. The reason that it runs up the red flag is that the irs thinks of atvs as mostly recreation in nature. My uncle had to fight the state of Ohio over paying sales tax on his atv that he bought for farm use. They sent him some questionaire about the indended use. He responded that he would be using in for checking crops, clearing fallen logs out of the fields and some spot spraying. They responded back that checking crops doesn't qualify for farm use and that he need to pay sales tax. He sent them another response back that he was using the machine primarily for spraying needs and they left him alone. If you do claim it, be careful about any questions they pose to you about it. I would also claim some of it as personal use (more realistic). I would claim 80% business use, 20% personal. They may not question this as much. Hope this helps.

 

Seems like you can list it as a fixed asset and depreciate it(to the amount that you use it in the business) as well as take milage off for it. at least that's what I'm going to try next year...
CLP

 

i am a contractor, in michigan. i work like a dog in the summer, but slow slightly in the winter. i bought a new grizzly, and desited to use it for plowing snow for customers in the winter. i went to the city and got a business started for snow removal. then i bought a new plow for it, a new trailor, and tires. i talked to my tax man, and he told me to right the thing off!!! we did a partial write off on it, deducting the plow, the tires, the trailor, and a % of the cost. i now depreciate my quad down, lol. i stated i use it about 30% for work, witch is correct to the best of my ability to keep track of hours and milage. to boot, i now can clear up to 600 or 800 a day during a bad snow, lmao!of corse i do pay taxes on the money earned, and have suplimented my income during the bad weather season!!!


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