Can You Write Off a UTV on Your Taxes?

A Utility Task Vehicle, or UTV, is designed for various off-road and work-related functions. Business owners can deduct the costs of a UTV if it meets specific business-use standards from the Internal Revenue Service (IRS). To qualify for tax write-offs, the vehicle must be proven as an ordinary and necessary expense for your business. The ability to claim a deduction depends on establishing business use, choosing a method to deduct the cost, and keeping proper records.

Establishing Business Use for Your UTV

The first requirement for deducting UTV expenses is establishing the business-use percentage. The IRS requires the vehicle to be used more than 50% of the time for legitimate business activities. If this “primary use” test is not met, the UTV is considered a personal asset and its costs are not deductible.

Calculating the business-use percentage is based on mileage. You must track the total miles the UTV is driven during the tax year and the miles driven specifically for business purposes. The business-use percentage is determined by dividing the business miles by the total miles. For example, if a UTV was driven 2,000 total miles in a year, with 1,600 of those for business, the business-use percentage would be 80%.

Business use involves tasks directly related to your trade, such as a rancher hauling feed to livestock, a construction site manager transporting tools across a job site, or a property owner inspecting extensive grounds. Personal use includes any activity not related to the business, such as recreational trail riding or hunting for sport. Commuting from your home to your primary place of business is also considered personal use.

Deduction Methods for the UTV Purchase Price

The Section 179 expense deduction allows a business to deduct the full purchase price of qualifying equipment in the year it is placed in service, rather than depreciating the cost over many years. For 2025, the maximum Section 179 deduction is $1,250,000, subject to a total equipment purchase limit of $3,130,000.

A rule related to vehicle weight provides an advantage for UTV owners. While certain heavy vehicles like SUVs with a Gross Vehicle Weight Rating (GVWR) over 6,000 pounds are subject to a lower Section 179 deduction limit of $31,300 for 2025, a UTV is classified as work equipment. This classification means a UTV with a GVWR over 6,000 pounds is not subject to the lower SUV limit and can qualify for the full deduction. You can find the GVWR on the manufacturer’s compliance label on the vehicle’s frame.

Another option is bonus depreciation, which allows for an accelerated deduction in the first year the UTV is used for business. For property placed in service in 2025, the bonus depreciation rate is 60% of the cost. This percentage is scheduled to decrease to 40% in 2026. A business can claim bonus depreciation, which is useful if it has already exceeded its Section 179 spending cap for the year.

If a business owner chooses not to take the Section 179 or bonus depreciation deductions, the cost can be recovered through the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, a UTV is classified as 5-year property, similar to automobiles and light-duty trucks, meaning the cost is deducted over a five-year period according to a set schedule.

Deducting UTV Operating Expenses

Beyond the initial purchase price, the ongoing costs of operating your UTV for business can also be deducted. These operating expenses are deductible in proportion to the vehicle’s business-use percentage. If you use your UTV 80% for business, you can deduct 80% of its total operating costs for the year.

Common deductible operating expenses include the costs of fuel, oil, tires, and routine maintenance. You can also deduct the business portion of expenses for repairs, insurance premiums, and registration fees. For instance, if you spent $1,000 on new tires and your business use was 80%, you could claim an $800 deduction.

Because the IRS considers UTVs to be equipment and not passenger automobiles, you must use the “actual expense” method. This method involves tracking and deducting the actual costs incurred. You cannot use the standard mileage rate, which is a simplified cents-per-mile deduction available only for cars, vans, pickups, or panel trucks.

Required Recordkeeping and Reporting

To substantiate any UTV-related tax deductions, you must maintain detailed records to support both the business-use percentage and the expenses claimed. The primary documentation is a mileage log. For each business trip, your log should document the date, the starting and ending mileage, and the specific business purpose of the travel.

In addition to the mileage log, you must keep all receipts and invoices for any expense you intend to deduct. This includes the bill of sale for the UTV purchase, as well as receipts for fuel, maintenance, repairs, and insurance. These records should be organized and stored for at least three years from the date you file your tax return.

Deductions are claimed on specific tax forms. Form 4562, Depreciation and Amortization, is used to report the deduction for the UTV’s purchase price, whether you use Section 179, bonus depreciation, or MACRS. The total depreciation and prorated operating expenses are then carried to the appropriate business schedule, such as Schedule C for sole proprietors or Schedule F for farmers and ranchers.