Is this a new deduction? Never heard of it but would be nice.

 

If your hobby did not earn you a profit, or loss trying to make profit, you can't claim it. Trying to use the deduction could trigger an audit flag. Be careful. Start here: Business or Hobby? Answer Has Implications for Deductions

You should be able to claim the sales tax you paid on it, as it should qualify as a "big ticket" item, as long as you purchased it last year.

 

You would have to receive and report money earned doing your hobby, and then you are limited to only deducting up to the amount you earned/report.

 

This had me confused

 

Is this a one time O'bama tax credit on rzr ?

 

Unless you get paid by someone to ride your rzr the answer is no. If you do get paid by someone to ride your rzr then you can but only up to the amount that they paid you.

Also if by some chance you do get paid by someone you have to report the money they paid you as income.

 

"... to the extent to the taxable hobby income you report."

Which means... NO HOBBY INCOME = No deduction.

The better question may be ... What type of offroad business should one create (theoretically of course) in order to make their hobby a net loss to then write off against their income... wouldn't that be doable?

Guided RZR tours: 1$ an hour , free beer and sandwiches included !
:rofl3:

 

Sign me up! I'd pay tree-fiddy for an hour, free beer, and a tasty BBQ sammich

 

Don't over pay, there trying to lose money for taxes.

 

Wrote mine off as farm expense.

 

wrote 50% of mine off for business expense, use it to remove snow and haul equipment.

 

That box is for hobbies like racing where you have to claim income from winnings so you can claim expenses up to the amount you won.

 

i have not looked but i think mine will go under 179. we have to have an utv to haul chemical tanks to certain areas. but dont know if i can 179 it or not. well leave that to the cpa

 

Bought my 900S for my tree business, so it's wrote off as that..

But hey I get to use it on weekends too!

 

If you write it off as a business expense be prepared to prove you have a legitimate business to operate it in. A former co-worker tried to write off his Rhino because he was using it at work but when he was audited the IRS refused the deduction because, #1 the business was not his. #2 the company he worked for did not require him to use it at work. He was using it for his own convenience. He lost some cash in the deal.

When I was racing cars, for the first three years I operated the racing as a business and could claim all expenses even though it was as a loss, but after that I could only deduct as much as I had made in prize money because the IRS considered it a hobby, not a business.

 

The IRS is cracking down on the business expense stuff heavily. Esp if a small company with little income claims a $20k+ machine....

Id be really careful writing anything off unless you can prove it under audit.

I just happen to be an accountant by trade

 

good thing my CPA is my wife