Can I deduct the payment of a Polaris Ranger that is used for my job on my taxes?

[JulieH1]

This one is a bit tricky!

If you are a business owner: No, you cannot deduct the payment, but you can deduct the depreciated cost.

You cannot deduct the equipment payment if you are a sole proprietor.  You can, however, deduct it under a Section 179 asset if you use it in your business.  If you use it personally also, you have to divide the percentages by personal use and business use.

If you have a business, you can deduct business-related expenses.  So, if you need the item for your business you can deduct it on a Schedule C.  For a piece of equipment, you would need to end up putting the cost in and it will be depreciated over a number of years and you can deduct the mileage.

The IRS considers ATVs to be equipment and not a vehicle so you cannot deduct the standard mileage rate.

If you are an employee:  Maybe. 

Generally speaking, the cost of tools and equipment to do your job is tax deductible. The IRS looks at such deductions as being ordinary and necessary expenses. What’s ordinary? If an expense is common and accepted in your trade, business or profession, it’s ordinary. To be necessary, an expense must be appropriate and helpful to your business or job. An expense does not have to be required to be considered necessary.

In a nutshell, you need to show that the expense was for items to do your job or trade properly, and that your employer doesn’t provide the items.

 A note about usage: only the portion of the cost related to your job is deductible. If a computer or tablet, for example, is put to personal use 20 percent of the time, the deduction would be for the remaining 80 percent of the cost of the item.

When you claim your expenses on your tax return, you may find it helpful to attach a letter from your employer explaining that the purchases of tools and equipment are needed for your job. Make sure your employer mentions why the tools or equipment are needed in your job.

Deductions Subject to the 2% Limit. You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). You can claim the expenses that is more than 2% of your adjusted gross income.

[rmkhalaf]

Where did you find that IRS considers ATVs (All Terrain Vehicles) as equipment but not vehicles?  I have been looking for that online but no luck so far.  Is there a IRC code or something like that?  Thanks, Rami

[xmasbaby0]

@rmkhalaf You are posting to a thread that might be more than two years old.   Please explain your own situation and what you are trying to do.

[Critter-3]

ATVs are not considered vehicles as they are not street legal.  So they are considered 7 year property because there is no specific category for them... review the CLADR tables : 

Passenger Automobiles
A passenger automobile is any four-wheeled vehicle
made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (6,000 pounds or less of gross vehicle
weight for trucks and vans). It includes any part, component, or other item physically attached to the automobile at the time of purchase or usually included in the purchase price of an automobile.

https://www.irs.gov/pub/irs-pdf/p946.pdf

[rmkhalaf]

Thanks for the input.  Where is the CLADR Table?

Your input is greatly appreciated and I agree with it, but if I can locate this explanation you provided is some IRS code then that would hit the spot!

[rmkhalaf]

If an ATV by the IRS code is not a car, then they cannot apply car dealership rules to the ATV used for experimenting with new upgrades and features.  So, I am trying to find specific reference or close to it in the IRS code so I can use it as a reference.  Is there anything you have seen in the IRS code that classifies an ATV or address an ATV as a deduction from an equipment standpoint?  Thanks in advance!  Rami

[Critter-3]

It is defined in the negative ... since it is not a car and is not in any other category in the CLADR tables then by default it is a 7 year property as equipment.  

[Carl]

@rmkhalaf the IRS defines what qualifies as a vehicle. They do not define what does *not* qualify as a vehicle. An ATV is not considered a vehicle because it does not meet the IRS definition to qualify as a vehicle.