We are sole proprietors in the construction industry. We partake in snowmobile trips with our builders and clients on a regular basis. Can this justify taking the section 179 deduction on some new sleds? Thanks!
there is a fine line here that you must be sure not to cross.....yes you can deduct the sleds IF the sleds are bought with business funds and you NEVER use them for personal recreation.....if you do use them for personal recreation then you can only deduct the expenses for the day such as fuel and your percentage of meals and entertainment.....sole props have a more difficult time with this over a corporation but it is possible.....for instance, if you take your personal sleds out with a potential construction client to scout property then you may be able to deduct only the days expenses.... if you take sleds that are considered business property (you never use them personally) you can deduct the sleds ~ where the fine line comes in is this: can you do this in an SUV that could otherwise be used to promote business and can in no way be perceived as recreational?.....this is all possible for you but i believe i would ask a tax professional and ask them to please pull the publication and highlight it and provide it for you to put with your copy of your return as back up