New Holland Tractor (non farm use) 5yr or 7yr recovery?

[AZ-Tax]

What do you think?

[erchess]

My Two Cents

When the Cladr Tables talk about tractors and other farm equipment they are defining the objects in question by their most common use but the fact that a given business uses one for something else changes nothing. I STAND CORRECTED. TRADE IN WHICH ASSET IS USED OFTEN RELEVANT IN DETERMINING CLASS LIFE. SEE LATER POSTS IN THREAD.


For 2008 a tractor is seven year property but if placed in service after 12/31/08 it's five year property. - TRUE ONLY FOR A TRACTOR USED IN FARMING.

[AJsTax]

erchess

Please explain. I have not seen anything that will change equipment used in the course of a business from 7 to 5 year class. with the exception of certain identified items. I work with depreciation every day. There may be something new that I missed??
There a lot of the smaller New Holland tractors used in landscaping, lawncare, pool installations,etc. They all qualify for 7 year class depreciation.

[AZ-Tax]

New Holland is used grading but I was not supplied with

the model number of the tractor.

[Davc]

An example. A caterpillar tractor used in agriculture is 7 yr property.

The same piece of equipment used in construction or logging is 5 yr property.

[AZ-Tax]

Davc, that was a very helpful good example

Thank you, good example

[erchess]

Tractors becoming 5 y in 09

See TTB SB Edition pg 5-8 note at bottom right.

[AJsTax]

Deluxe

See TTB SB Edition pg 5-8 note at bottom right.

could someone translate that to the Deluxe version?? I can not find it.
Thank you
In construction we have always restricted the 5 year class to equipment used by a contractor in new construction only. That is the way I read that class today in the Pub. Do you not agree with that? We almost never use the 5 years because seldom is always new construction with the contractors we work with.

[erchess]

Aj

I haven't read the pub and I won't have time before the end of tax season unless I get a client who is a contractor and has equipment we are not going to cover with a 179 Election To Expense. I think the most expensive and heaviest tool owned by a contractor of mine is a table saw that is designed to be taken from site to site. I didn't see anything in TTB to indicate discrimination between constructors who build new and those who repair or remodel or for example do landscaping or grading for both new and existing structures.