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179 property, by definition, means “tangible property * * * which
is acquired * * * for use in the active conduct of a trade or
business.” Sec. 179(d)(1). Whether or not we view petitioner’s
farming activity as a trade or business entered into for profit,
petitioner’s tractor and fuel tank were not used in that trade or
business.
Petitioner testified that he used the tractor to cut the
perimeter of the property. The perimeter of the property had
nothing to do with the farming activity. The cutting of the
perimeter was for aesthetic, personal reasons, and, whether it
was cut or not, had no bearing on the farming activity.
“It is a fundamental policy of Federal income tax law that a
taxpayer should not be entitled to a deduction for ‘personal’
expenses, such as the ordinary expenses of everyday living.”
Dobra v. Commissioner, 111 T.C. 339, 348 (1998); see sec. 262(a).
It is clear that only the 6 acres rented out were used in
petitioner’s farming activity. Furthermore, it is clear that the
tractor and related fuel tank were purchased to maintain the
remaining cleared acreage that was kept fallow. It is obvious
that this fallow land was nothing more than curtilage, maintained
purely for petitioner’s personal enjoyment. Therefore, we find
that the expenses of purchasing the tractor and fuel tank were
personal expenses and are not deductible.
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Last modified: May 25, 2011