Under which circumstance would a tractor used solely for personal purposes be taxable?

A tractor used solely for personal purposes would be taxable if it generates income. This is because the tax system generally focuses on the potential use of property in a profit-generating capacity. When a tractor is used to produce income—such as using it for farming, renting it out, or perhaps even several business-related tasks—it shifts the classification from personal use to a commercial asset, which may be subject to taxation.

This idea is rooted in tax law principles, where certain assets, even if personally owned, can attract tax liabilities if they contribute to income generation. Personal use implies that the asset does not engage in commercial activity, thus keeping it outside the scope of taxation in most jurisdictions.

In contrast, the other scenarios presented do not inherently involve taxation. For instance, the cost of the tractor or its value does not determine taxability when it is used solely for personal purposes. Likewise, using the tractor for work-related tasks does not necessarily imply income generation unless it is part of a business or generates revenue. Furthermore, mere valuation above a certain threshold, like $50,000, does not automatically subject personal-use items to tax if they aren't creating income.