Tools and Taxes
First off ~ Happy New Year!~
This year I have spent between 6k & 7K on tools and was wondering if any of you have ever written tools off on your taxes. I can interpret all manor of diagrams, schematics, & tech chicken-scratch, but tax jargon - not so much. Any insight into the world of the IRS is appreciated.
Yes! If the tools are "ordinary and necessary" for your job, you can deduct them from your taxes. Same with uniforms:
"An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary."
Read all about it: http://www.irs.gov/publications/p529/ar02.html
yea, I do it every year. If you need them to make money....
yep, take that deduction every year. 100%-no depreciating them over time, because if they break tomorrow..................they have to be replaced.
You have to be careful with boots and uniforms. If you read near the bottom of the IRS document I posted you'll see. If they CAN be used for everyday clothing they are not deductible.
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my boots are work boots only.
take deductions for uniform cleaning, tools, training, etc.
Ok, I'll cut and paste the relevant IRS passages:
It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.
Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).
Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.
However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.
Protective clothing. You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves.
So, unless your employer specifically requires you to wear certain boots that you only use for work, or those boots are required by safety regulations for YOUR job, then you cannot deduct them. If you are self employed, you cannot deduct anything under this section. In that case it would be an expense of your business.