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New ATV tax deduction?

Discussion in 'Business Fundamentals' started by fulltiltwill, Nov 24, 2006.

  1. fulltiltwill

    fulltiltwill Senior Member
    Messages: 204

    Hey guys I just got a new to me quad for my walks. I was just wondering how the IRS views that as a business deduction, seeing as how it is an ORV vehicle. Any thoughts are welcome.
    Thanks Adam
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Be very carefull and ready to PROVE that it is used strictly for business purposes. Keep accurate use records. This should show daily use and the route it is used on. Keep fuel receipts. If it's used in the off-season, you just lost any argument. Otherwise, you could try to claim a percentage. Be aware that once you are audited, you will be on theirs radar for years. The best way to get your return flagged for scrutiny is to have self-employment income and deductions (Schedule C) with other earned income (W2). Then to throw a questionable deduction into the mix.... The best way to avoid an audit is to hire a good accountant or tax preparer. They will often know what can raise suspicion and can include note of explanation to head off an audit.
  3. framer1901

    framer1901 Senior Member
    Messages: 805

    Fulltilt - How is your business ran? Sole properitor or as INC? Do you use a seperate checking account??

    There's many ways to do it from making it a real business purchase and depreciating it to leasing it to the business from you personally for a set period of time for a price - like 4 month contract.

    You need a bean counter dude.............
  4. mike33

    mike33 Senior Member
    Messages: 335


    I have one too. But i use it very little pleasure, except this year in deer season. Mine is a 03 with less than 200 miles thats hard to argue. I bought it with a plow and use it landscaping also.
  5. Proscapez LLC

    Proscapez LLC Senior Member
    Messages: 293

    buy a plow for it and say its for sidewalks, and in the summer use it as a spreader.
  6. fulltiltwill

    fulltiltwill Senior Member
    Messages: 204


    Hey guys
    I am a LLC. I used to have CPA, paid him $400 a year to do my taxes until I got audited. Come to find out he screwed up on a lot of stuff. Could not go back on him because I am responsible to file a correct return.:realmad: Thank God the IRS looked kindly on my situation and did not hit me with any penalties. So I think since the machine does not have a hour meter or an odometer I think I will just take 50% of the perches price, and what I use for gas for plowing and keep good records. The only good thing about getting audited is that you learn what the IRS looks for.
    Thanks for your suggestions