Can a lube tech in CA write off tools in taxes?

[1ZlowZ]

I write off my tools every year and our new lube tech over the past 6 months he's been with us has spent 1,500 in tools with the snap on guy.
Hes hourly at about 10$/hr idk how he does when he brought up how much he spent so far I wanted to suggest to him to write it off but idk if he can. Just curious.

 

[Guns R Tools]

Ask him to save receipts and show to the CPA.

 

[K'ledgeBldr]

Yes they are deductible, but it probably won't help due to his annually adjusted income.

Tools are an employee business expense that are reported on form 2106 which then carries to Schedule A itemized deductions (following a regular 1040 form). Employee business expenses must exceed 2% of you adjusted gross income before they start to count. If he adds all his itemized deductions up and they exceed his standard deduction it will lower his tax.

 

[1ZlowZ]

I guess it makes sense but since he doesn't really 'need' them for his job. The shop supplied all the tools he needs for what he does. He just likes to have more tools at work.
There wouldn't be any complications with that would there?

 

[nehog]

I guess it makes sense but since he doesn't really 'need' them for his job. The shop supplied all the tools he needs for what he does. He just likes to have more tools at work.
There wouldn't be any complications with that would there?

Sounds like his problem is not deducting tools, but learning that he can't buy every tool he sees and likes. Let me take a WAG: the tool truck let him have those tools on credit, right?

 

[mattmankow]

As long as he meets the minimum deduction amount, he can write off any tool he feels he needs at work. Just remember its a reduction of income, not a tax credit... big difference.

 

[Daedalus]

If he adds all his itemized deductions up and they exceed his standard deduction it will lower his tax.

That's the key right there. Good luck finding a marginal benefit (or any at all) over the standard $6100 deduction if he's single. If he's young and making $10/hour he's probably not paying mortgage interest. If he DOES find something to write off for his job then he's in way over his head, or the lube tech job is just a cover.

 

[KPSquared]

Tell him to move out of his mommy's house, grow up and learn to manage his life. What's he take home? $1200 if he's lucky?

He'll be broke soon enough Then you can get a good deal from the snappy guy on his repo'd tools. ..

 

[Charles (in GA)]

Only that amount that exceeds 2% of Adjusted Gross Income, and then only "disposable" tools that will, according to the IRS, be "thrown away" within a year.

Charles

 

[ArkTinkerer]

If he does work that can make him self-employed, he should look at a section 179 form that will expense them all in the year of purchase.

 

[alpinewhite]

In addition to his W-2 income (as a lube tech), he can have a side business being self-employed working on cars during time away from his regular job. Any tool he buys as part of his "business" can be written off in Schedule C. IIRC (accountants can correct me if I'm wrong), a business may write off equipment during the year it was placed in business and that it doesn't need to be depreciated. This is per Section 179. The loss from schedule C will then be recorded in the 1040, thus, lowering the Adjusted Gross Income (AGI).

 

[1ZlowZ]

I don't know his situation, good kid. 1,500 isn't too bad when I spend 5-6k year on tools.
I guess he goes by the unwritten rule of borrow 3x then buy your own. He's had to borrow a few of my tools a couple times when the writers hand him easy oddball jobs.

 

[Falcon67]

Schedule C side business is the only way here. Hell we make good and can't even itemize because the standard deductions are so high. I had well over $6K out of pocket (on 40K - can't complain) in medical last year - so sad, too bad on itemizing.