| If you have a working farm (you intend to make a profit from the crops/livestock you raise), you report farm income and expenses on Schedule F. These expenses include equipment used to produce the crops/stock. You depreciate equipment over some number of years (depends on the type of equipment). I can't recall the depreciation life for tractors, but I think it's 7 years. By depreciating the tractor, you get to take some of the purchase price each year, instead of taking it all in one year. You can also take all the expense in the year you buy the tractor, if that helps your taxes.
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09-03-2002, 08:50 PM
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