I am a mechanic, can i write off the tools that I purchase?

Question

I just started working in the field, i bought numerous tools during my schooling so I have had some of them for no more than three years, also I don't have receipts for every one of them. what can i do?

I purchased all of these in anticipation of needing them when i went to work

Answer 1

Yes, if you work as an employee, and you itemize, you can deduct the expense for tools on Line 22 of Schedule A, as an unreimbursed job expense, miscellaneous deduction.

On Schedule A, the deduction is subject to the 2% limit rule. You can claim the amount of expenses that are more than 2% of your adjusted gross income (line 37, form 1040)
---See IRS Publication 17, page 190.

If you are a self employed mechanic, you can deduct the expense for tools on your Schedule C. The 2% rule does not apply if you are self employed and reporting on Schedule C.

Most tools depreciate over time and have an expected lifespan of several years, so your correct entry on your return would be the the depreciated value of your tools.

The easiest way is to figure depreciation is to estimate the lifespan of each individual tool, then divide the {cost of the item new} less the {salvage value} by the [number of years] in it's estimated lifespan.

(Cost new - Salvage value) divided by (number of years) = yearly depreciation value.

Then you should deduct the same amount of depreciation each year on your taxes for the life of the tool.

You should attach a list of your tools to your tax return showing each individual tool, the date it was purchased, the original value, the date it was placed in service, number of years in the lifespan of the tool, the amount of depreciation per year, and the current depreciation value for 2006. Add the last column, and enter the total depreciated value for 2006 on Schedule A, or Schedule C.

The cost of small tools and supplies that you bought in 2006, needed for your job, for which you do not receive any reimbursement, that have a life span of 1 year or less, can be entered at full value on your attached list and included in the total at full value.
--IRS Publication17, page 190

Use IRS Publication 946, for information on depreciation.

Answer 2

You can only claim what you buy during the year. So those tools you bought last year are not a deduction this year.
I know that Snap-On will give you a list of what you have bought for the year so you can claim those on your taxes.
Keep in mind that tools are an unreimbursed employee expense and you need to be able to itemize your taxes for these tools to benefit your tax situation.

Answer 3

You definitely cannot claim the entire cost on the current year's return. You MAY be able to deduct the depreciation that occured during the current year. To do this, you will need to know how much the original cost was and to do some math. You MAY be able to amend the returns filed for the past years to claim the cost on those returns.

Answer 4

You can write off tools as an expense if you're using them for your business.
However, you may be required to produce receipts.
And, you usually have to claim the expense in the year that it occured.
You may want to talk to the person who prepares your taxes.

Answer 5

yes you can write them off...but you need the receipts :o( can you go back to where you purchased them...you may be able to get copies on them....and start saving all your receipts...even write on it what it is and when you bought it if that info isn't on it

Answer 6

Interesting discussion!

Answer 7

I'm waiting on more replies before I post my view

Answer 8

Sure thing