Employee business expense tools


S

SMF

Employee - mechanic - must purchase own tools. I understand if small
tools it's deducted on schedule A subject to 2%. What if they are
large tools - $500+? Depreciate? Sec 179? and bring also to sch A?
This mechanic makes 60,000 and spent 3200 on tools. Thanks
 
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A

Arthur Kamlet

Employee - mechanic - must purchase own tools. I understand if small
tools it's deducted on schedule A subject to 2%. What if they are
large tools - $500+? Depreciate? Sec 179? and bring also to sch A?
This mechanic makes 60,000 and spent 3200 on tools. Thanks

Well, it's not reeally the size of the tools, but their useful life.


If they are not expected to last beyond a year, then regardless of
size or cost they are expense items.


As an example, GM purchases drill press dies that can easily run
well over $1 million each, but the stamping takes a toll on those
dies and they well might be expected, and do last only 8-9 months.

(Of course GM doesn't file a 1040 Schedule A :^)


For tools lasting longer than a year, you would dpreciate them
and have the option of S 179.

If this year Misc deductions won't break the 2% barrier even
with S 179, then don't 1179 them, and use S-L instead.
Your 60,000 mechanic with only 3200 in tools needs lots more
Misc 2% before your question becomes moot.

You don't actually file the depreciation form even if you
do depreciate.

And for heaven's sake, please don't run the tools through a
2106, which is for T&L.
 
D

D. Stussy

Arthur Kamlet said:
Well, it's not reeally the size of the tools, but their useful life.

If they are not expected to last beyond a year, then regardless of
size or cost they are expense items.

As an example, GM purchases drill press dies that can easily run
well over $1 million each, but the stamping takes a toll on those
dies and they well might be expected, and do last only 8-9 months.

(Of course GM doesn't file a 1040 Schedule A :^)

For tools lasting longer than a year, you would dpreciate them
and have the option of S 179.

If this year Misc deductions won't break the 2% barrier even
with S 179, then don't 1179 them, and use S-L instead.
Your 60,000 mechanic with only 3200 in tools needs lots more
Misc 2% before your question becomes moot.
Note: 2% of $60k = $1,200 < $3,200, so ???
If he 179'ed them, he'd get a $2k deduction (just for this alone), so why
"needs lots more ....?"
 
A

Arthur Kamlet

Note: 2% of $60k = $1,200 < $3,200, so ???
If he 179'ed them, he'd get a $2k deduction (just for this alone), so why
"needs lots more ....?"

Se what happens when I use a slide rule instead of an abacus? Misplaced
decimals.....
 
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R

removeps-groups

Note:  2% of $60k = $1,200 < $3,200, so ???
If he 179'ed them, he'd get a $2k deduction (just for this alone), so why
"needs lots more ....?"
How does one recapture depreciation on this item? Say he does 179 and
gets $800 deduction. Then we he sells he only recaptures $800, and on
which form is the gain/loss reported?
 

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