Tractor purchase

Asked February 15, 2017, 6:01 PM EST

How many acres is considered a farm that you can deduct a new tractor which is used for planting and cleaning the land we have 5.23 acres

Meigs County Ohio

1 Response

There are several different definitions for farm used in the government setting. CAUV has probably the most stringent with either 10 acres or $2,500 in income annually. However for you question, the answer would be if there is farm income and a schedule F income tax return filed (or plan to file for 2017). If you have a farm by the IRS definition (very liberal) and have schedule F income and expenses, you can either expense with section 179 or use MACRS depreciation. If you are asking if you are exempt from paying sales tax, then you need to use Ohio's definition for a farm. Again I would think of it in terms of farming activities and future products raised to sell. Size of acreage does not matter