Tax on Tractor?

ruglad03835 · Apr 9, 2007

Tax, What Tax?????
Honestly when I lived in Rhode Island I had to pay sales tax and then the local town nailed me on a use tax they found in their books. My accountant was able to get it refunded but I had to show proof that I was not using the tractor for a business.
The Town even went so far as to ask for an inventory of the hand tools I had so they could even apply the use tax to them.

JDFANATIC · Apr 9, 2007

ruglad03835 said:
Tax, What Tax?????
Honestly when I lived in Rhode Island I had to pay sales tax and then the local town nailed me on a use tax they found in their books. My accountant was able to get it refunded but I had to show proof that I was not using the tractor for a business.
The Town even went so far as to ask for an inventory of the hand tools I had so they could even apply the use tax to them.

No wonder you fled to NH!

Rob-D · Apr 11, 2007

Good news!

OK, here's the run down in case any of you buy a tractor and want to itemize the deduction.

The IRS will allow the tax you paid on a tractor IF your state considers it a motor vehicle.

I contacted NYS tax dept. and they told me to contact the Dept. of Motor Vehicles. I did and my DMV told me that the tractor (all farm machines) are considered motor vehicles.

So if you bought a tractor and paid tax on it like I did you should contact your state DMV to see if they consider it a motor vehicle.

Here is the actual response from my DMV:

"Response (Central Dealers) - 04/11/2007 09:51 AM
If by tractor you are referring to a piece of farm equipment, yes; but they are not required to be registered. Although they are required to have at least the warning placards on them to be used on public roadways."

Rob