Tool Tax Write offs

[paulxpowers]

Hello all, quick question i was hoping someone could answer, ive searched but was unable to come up with anything. If i buy a rather large amount of tools from my dad, even though they are used, can it still be used as a tax write off? And will my dad have to claim it to be income on his taxes? Thanks

 

[jack stand]

I'd say that as long as you can "justify" them as a business expense you could. As for your Dad, are they his personally, or his business? If it's personal property (non business) it is not "income" and should not be taxable, but surely obama will find a way to tax it for obamacare!

 

[ZRX61]

Have a look here:
http://www.section179.org/

 

[Falcon67]

If the purchase is a legit business expense, it should show up on your Schedule C. As for your dad - read the IRS regs. EVERYTHING is taxable - if you roof his house and he gives you tools, technically you both have to claim the value of the exchange as income. Really. Everyone in full compliance raise your hand...where'd everybody go?

 

[JCQuick]

If your in a trade that that requires you to purchase tools to complete your task than yes they can be deducted. thats why tool men give year end statements
hello

 

[paulxpowers]

Ok thanks everyone

 

[BFBOB]

Presumably your Dad bought the tools. If you paid him more for them than they cost him, he made a profit, and that profit is reportable income. If you paid him less than they cost him, there is no profit, therefor no income.
Whatever you buy for use in your business is a deductible expense. Some things must be amortized, some are deducted all at once.
Get the IRS instructions from the Post Office and read up. Don't do an online search. They're watching, and they know who you are. Your aluminum foil hat won't help - that's only good for space aliens.

 

[slip knot]

Get a good accountant. He can direct you to what is or isn't a deductible expense. Mine has made me money every year in extra deductions that I had never thought of.

Yes I deduct all my tools. The bigger power tools take a few years to write off but it does help.

 

[joe_padavano]

Would you be asking your accountant for auto repair advice?