Did you know antique tractors are deductible?
Are you aware that antique tractors can be deductible?
You might be surprised to know that the IRS once tried to challenge this very topic in court. In a recent article, Tractors, Antique or Not, Are Deductible,” we dive into the interesting case of Steven Hoakison and his collection of antique tractors.
Hoakison faced an audit by the IRS, which disputed that the 40 antique tractors he owned served no business purpose and were purchased primarily for personal reasons. The IRS argued that these antique tractors were purchased for nostalgia, and that Hoakison could have performed the same work with his existing fleet of 17 tractors.
Despite the IRS’s argument, the court ruled in favor of Hoakison. The court stated that the deductibility of the new tractors was not contingent on Hoakison’s ability to perform the same work with his existing fleet. The only requirement was that the newly acquired older tractors be used in Hoakison’s farm business, which they were.
Intrigued? The article goes on to explain why Hoakison owned so many tractors, why he opted for older tractors, and the key takeaways from this case.
Whether you own an antique tractor or any other business asset, the key to deductions is how you use them. This case highlights the importance of physical business use to make for the deductions.
Read the full article here to learn more about Hoakison’s case and the deductibility of antique tractors.