Propickup Digital Magazine
Issue link: https://read.dmtmag.com/i/130418
MONEYMATTERS MATTERS SIDE-BY-SIDES: THE OTHER WORK TRUCK T he guys couldn't believe it when they were blasting across the dunes recently and heard a police siren. Sure enough, my brother-in-law and co-owner of our construction company were being pulled over for an expired off-road sticker on his quad. The cool part, besides my brother-in-law being let off with a warning, was the state police officer wasn't driving a pickup – he was in a matte-black Polaris RZR 900 XP side-by-side complete with well-disguised blue and red LED flashers, radios and a bed loaded with other gear. A surprisingly sporty vehicle for the law enforcement fleet, yet perfectly suited for the job. Contrary to what some may think, side-by-side ATVs are not just for the recreational rider or outdoorsman. They have found solid niches in many different aspects of the rugged work world. ProPickup's editor saw firsthand how side-by-sides were used after Katrina smashed into the Mississippi Gulf Coast in 2005. When Georgia Power rolled into his town of Long Beach to help rebuild the power grid, guess what they used to transport their men and equipment around miles of broken concrete power poles and fallen trees? Polaris Rangers. And when one of Alabama's largest heavy construction contractors, RayCon, and Alabama DOT need to get site managers and key personnel around when road building conditions turn sloppy they use side-by-sides instead of four-wheel-drive pickups. Let's face it: side-by-sides are efficient and effective tool for anyone who works in and around construction and road building. As I write this, we have a Polaris RZR XP 900 4; a Yamaha 700 Grizzly; and a John Deere Gator RSX850i in the shop garage. While law enforcement in our area make good use of the RZR, it's probably a stretch to say it has business applications for contractors and landscapers. But the Grizzly and the Gator certainly do. If you don't have a side-byside in your company's fleet of vehicles, adding one (or more) to your fleet makes good business sense. After all, it's a piece of equipment. Therefore if you are using it for business purposes then you may be able to deduct the cost of acquiring it through a depreciation deduction over the life of the machine. You can also deduct expenses related to running it. Some things to keep in mind so this on the up and up what can be depreciated, per the IRS: • It must be property you own. • It must be used in your business or income-producing activity. • It must have a determinable useful life. • It must be expected to last more than one year. The IRS requires that you are able to prove the business/investment use with adequate records or with sufficient evidence to support your own statements. You'll need to have documentation supporting all expenditures and the percentage the ATV or UTV was used for business (mileage or time are good measurements to use to determine business/personal use). Don't under estimate the value of a good tax accountant – and make an appointment to discuss this with him/her. Items normally used for personal and recreational use, like ATVs and UTVs, may prompt an audit from the IRS. If you have done your homework and consulted with your tax accountant, then you should be Side-by-side ATVs are an efficient, multi-task vehicle for use in municipalities and DOTs, or construction and contracting firms. 12 PROPICKUP June 2013 PP0613_Money Matters.indd 12 5/8/13 2:11 PM