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Employee business expense tools
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SMF
Feb 2, 2012, 8:54:53 PM2/2/12
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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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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
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Arthur Kamlet
Feb 2, 2012, 10:03:11 PM2/2/12
to
In article <709b5096-61e3-4b07...@j14g2000vba.googlegroups.com>,
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.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
SMF <smf...@comcast.net> wrote:
>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.
>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
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 $1 million each, but the stamping takes a toll on those
dies and they well might be expected, and do last only 8-9 months.
(Of course GM doesn't file a 1040 Schedule A :^)
For tools lasting longer than a year, you would dpreciate them
and have the option of S 179.
If this year Misc deductions won't break the 2% barrier even
with S 179, then don't 1179 them, and use S-L instead.
Your 60,000 mechanic with only 3200 in tools needs lots more
Misc 2% before your question becomes moot.
You don't actually file the depreciation form even if you
do depreciate.
And for heaven's sake, please don't run the tools through a
2106, which is for T&L.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
Message has been deleted
Arthur Kamlet
Feb 2, 2012, 11:38:57 PM2/2/12
to
In article <jgfl12$g25$1...@snarked.org>,
D. Stussy <replies+n...@kd6lvw.ampr.org> wrote:
>"Arthur Kamlet" <kam...@panix.com> wrote in message
>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.....
D. Stussy <replies+n...@kd6lvw.ampr.org> wrote:
>"Arthur Kamlet" <kam...@panix.com> wrote in message
>>
>> 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 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.
>
>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.....
removep...@yahoo.com
Feb 3, 2012, 1:21:51 PM2/3/12
to
On Feb 2, 8:30 pm, "D. Stussy" <spam+newsgro...@bde-arc.ampr.org>
wrote:
> 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?
wrote:
> 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 ....?"
gets $800 deduction. Then we he sells he only recaptures $800, and on
which form is the gain/loss reported?
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