Tools as Deductibles?

[Marc Benjamin]

So it's tax time and I'm thinking I should deduct some tools. Haven't seen my tax guy yet and I just wanted a feeler on the topic.


I'm not in the professional repair field but I was in the Automotive program at the local college last year.

I was wondering if any students (or anyone with experience with school deductions) here were able to deduct their tool purchases during their time in tech school.


I purchased close to 4k in automotive tools last year and am hoping to deduct that along with the tuition and books.



I have a different business as well.

 

[d.mcfarland]

It's a tricky situation. I'll say that. Don't get your hopes up. I'll also say that haha.

Edit: Did the work for you so here's the "official" answer.

Link: http://www.irs.gov/publications/p529/ar02.html

 

[Siegel1719]

I believe as a student the only way you could deduct tools is if your school REQUIRES the tool purchase to be in the program. If the school does not require it in the program then they would not be a legal deduction.

 

[rockinacummins]

Subscribed to know as well...

 

[Siegel1719]

Textbooks and tuition are obvious allowable deductions. Don't forget to claim the American Opportunity Credit if you were atleast a Part time student, Obtained a 1098-T from the school and Haven't claimed if for the past 4 years.

 

[rowerwet]

it will depend on your tax bracket and other deductions. Only trust a tax pro to get it right. you will need reciepts.
I was able to deduct my tools for many years (airplane mechanic) then we had kids, bought a house, and the deductions for the interest and child tax credit meant it wasn't worth itemizing for the tools.
The company I work for had a program to amortize the value of your tools. you wrote them all down, figured the current value, then submited it. Any new tools you gave them a copy of the reciept. Each week I got two pay checks, one from my employer, and one from Tool Solutions. Whatever Tool solutions payed, made the hourly rate from my employer lower, and tool solutions payed the rest out of what they reduced the value of the tools on paper. the Tool Solutions pay check was tax free, so It was actually like a raise. Sadly I was the only one taking advantage of the program the next year and it was dropped...
Since my tools are amortized (tax devalued) I can't sell them for any more than the dealued price is, of course tools only sell for about 1/3 of new price at best, and sales would not be reported to the IRS, so no worries.

 

[Charles (in GA)]

This comes up every year. Basically, some tools are deductible, but only to the extent that they exceed 2% of your income. I have never been able to find anything in the tax instructions or booklets to imply otherwise, even though many will claim to deduct all of their tools. If you run a business, then that is different, it becomes a business expense, but for a tech working for someone else, you are going to have to buy a bunch of tools to exceed the 2% and then the only items that you can deduct are items that will, according to the IRS, "be thrown away within one year".

Go to the IRS link above that DMcFarland gives us and scroll down to between the second "records" symbol and the "caution" symbol. You will find this...........

Tools Used in Your Work

Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. You can depreciate the cost of tools that have a useful life substantially beyond the tax year. For more information about depreciation, see Publication 946.

I am not a tax consultant, so take my information for what it is, a quote from an IRS publication. Its between you and your tax preparer (if you have one) to determine what is deductible and what is not.

Charles

 

[L.Cheapo]

Tools Used in Your Work

Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. You can depreciate the cost of tools that have a useful life substantially beyond the tax year. For more information about depreciation, see Publication 946.

I am not a tax consultant, so take my information for what it is, a quote from an IRS publication. Its between you and your tax preparer (if you have one) to determine what is deductible and what is not.

Charles

So what they're saying is...save those HF receipts?

 

[Lx460]

Are we talking about deductions or deductibles?

 

[nicksnothereman]

So it's tax time and I'm thinking I should deduct some tools. Haven't seen my tax guy yet and I just wanted a feeler on the topic.


I'm not in the professional repair field but I was in the Automotive program at the local college last year.

I was wondering if any students (or anyone with experience with school deductions) here were able to deduct their tool purchases during their time in tech school.


I purchased close to 4k in automotive tools last year and am hoping to deduct that along with the tuition and books.



I have a different business as well.

I was such a bad accountant and hated tax accounting but...if it exceeds the standard deduction then yes, if it don't then no. It's the general rule man for fed taxes.

Go ahead and derp the guy with the masters in accounting that can't remember **** about it.

 

[Marc Benjamin]

lol, I wrote deductibles but I really meant deduction.


Well after seeing my tax guy this afternoon, this has become a moot point since it turns out I cannot qualify the for neither the Lifetime Learning Credit nor the American Opportunity Credit. Heck I wasn't even able to deduct the tuition and books cause jointly, my wife and I are above the brackets.

Apparently, the only way I can depreciate or deduct my part time tech school tool purchases is if these were tools of my trade or if I owned a business that uses said tools. No luck there either!

Ah ****...