Ullmann & Company, PC
Election to Expense the Motor Home?

In Evans, the Court allowed a Sec. 179 deduction for a motor home used to transport the taxpayer’s son and motorcycles in a motocross business.  The taxpayer’s son slept in the motor home while traveling; however, it was also used to transport and store motorcycles at races.  The IRS argued the motor home was used primarily for lodging and thus the taxpayer could not take the Sec. 179 deduction; however, the Court found that it was used primarily in the racing activity and not as lodging, based on facts that included modifications allowing the vehicle’s rear wall to be folded down into a ramp, accommodating the loading and unloading of motorcycles.  Accordingly, the Court held the taxpayer could take the Sec. 179 deduction.  

Source:Evans,T.C. Memo. 2014-237.The Tax Advisor September 2015

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Ullmann & Company, P.C.
4647 N. 32nd Street
Suite 220
Phoenix, AZ 85018
(602) 224-0166
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