Don't forget that if you writeoff 100% of a motor vehicle used in farming, that can also double as a personal-use vehicle...........you are required to keep a log book of its business use.

Only way to avoid keeping the log book.........deduct only 75% of the vehicle and its related costs.

Regulation 1.274-6T(b) allows the farm pickup to be exempt from the listed property rules of Section 274(d)..........which provides (through regulations, and support from the US Supreme Court) that one must provide a mileage log for each vehicle in order to document business use.

Works like this................You get audited.............. 

Agent sits down, and says-------show me the log on your farm pickup.   You say-------I ain't got one.   

Agent says...that's ok...........then show me your depreciation schedule which shows you are only deducting 75% or less of the cost.......AND.......show me your expense records supporting the items in your Schedule F (or corporate return), where you are NOT deducting 25% of all the costs related to the pickup.               You say...........uhhh, well, we are deducting 100% of the pickup.

Agent says.............good.  Your additional tax will make my quota for this week!!!   I am adjusting for, ie eliminating, all of the costs related to the pickup........in this tax return, and for all prior years which are open, ie not closed by statute of limitations.

You say.................uhhhh........I need to go to the bathroom.

 It is a US Supreme Court sanctioned position by IRS--------you cannot win......there is no appeal.