How do I claim a tractor purchase?

If the tractor is for your personal use, you can't claim it on your income taxes.

If the tractor is an asset in your business, see Where do I enter my self-employment business expenses, like home office, vehicle mileage, and supplies?

If the tractor is an asset that you use in your rental, see Where do I enter income and expenses from a rental property?

If the tractor is an asset for your farm, Farm Rental Income and expenses are reported on Schedule F:

To enter your farm rental income and expenses:

1. Open or continue your return in TurboTax.
2. In the Search box type farm rental income.
3. Click the “Jump to farm rental income” link in the search results.
4. Enter the information regarding your farm rental.
5. Follow the onscreen instructions.

When items are purchased for a business, a decision is made whether it’s an expense that you deduct all of the cost now, or you deduct the cost over multiple years (depreciation).

• There are two elections you can make. One is used to deduct items with a cost of $2,500 or less instead of depreciating. The second election deals with deducting improvements to business buildings.
• These elections are available for Schedule C businesses, rentals, farms, and farm rentals. Click here to read the entire FAQ.