Gear Write-offs

[simplyarbor]

Just looking for a little insight before I talk to an accountant. This year I purchased approximately $1500 in climbing gear. I am not self-employed and work for a company as a climber. Can personal gear expenses be written off on taxes? Haven't considered it before, as purchases were minimal, but this year had a little acquisition disorder

and wanted to see if I could get anything back? Thanks!!

 

[rfwoodvt]

Might be allowed under employee expenses but to what degree I don't know. My wife has a lot of expenses that are unreimbursed but we never get to deduct any because the Feds won't let you deduct any unless you exceed a certain percentage of AGI.

Call H&R blockheads. They should know.

 

[PUClimber]

If you have the receipts you can take them to the accountant and can have them written off. I have been for years. Just remember they are "tools" and not toys.

 

[Tom Dunlap]

Tools are tax deductible, toys aren't.

Unless you itemize you're not likely to meet the income/tax level to take advantage of the deductions. Being self-employed is different though. The purchases are accounted for before taxable profits...does anyone in tree care really make a profit though?!

 

[John_Hartenburg]

As a piece of business equipment I wonder how many years it takes to amortize. Computers, buildings, cars & trucks....they all have different schedules.

That $1,500 or whatever might be spread out over 5 years or so.

Anyway, 401K and similar retirement plans can move that profit inventory to the deferred tax area pretty effectively. And don't forget the champ of reducing your tax exposure.....charitable giving!

 

[oldoakman]

I thought I heard that for 2011 you could take a one time deduction for the full cost of tools that cost under $3000. Not exactly sure about the number. It would be an advantage for those who bought chainsaws etc through the year. Unfortunately I heard about it too late for me to take advantage of it. Check with a good accountant on this to be sure.

 

[Paul Biester]

less taxes for all would be great!! oh but DC would have to cut back first!! ooooo sorry different thread. lol

 

[John_Hartenburg]

No kidding...you can bet the social security threshold is going to be raised again, and the capital gains tax on dividend income....ugh... Don't get me started!

Anyway, sure, if we can write off tools and 80% of trucks in year one then at least we got that....

 

[simplyarbor]

Thanks for the replies everyone! Figured I would see what the verdict was here, but will be calling the accountant for sure this week to clarify. I will follow up with answers for any interested parties. I'd like to flip some gear write-offs/returns into a new "toy"motion

 

[rfwoodvt]

[ QUOTE ]
No kidding...you can bet the social security threshold is going to be raised again, ....

[/ QUOTE ]

No doubt about that. this stupid "Payroll Tax" reduction they are keep talking about is nothing more than reducing what they take in for Social Security by 25%

How in the world do they thing SocSec will survive?!?! The damn thing is bleeding to death as it is and now they are telling the American people they are doing them a favor by putting LESS money into SocSec?

Time to nuke the whole bunch of idiots in washington and replace them with the farmers that used to run the show on 8 times less than they do now.

 

[John_Hartenburg]

Huh? I was talking about the wage base threshold for SS taxes.....10 years ago it was $85,000, now they bumped it all the way to a touch north of $110,000!

Ugh......

 

[frashdog]

My experience is no.

When I was a paid pro ski patroller I could not write off my equipment, cloths, travel......We are talking expensive requirements. Now my accountant explained I could get travel expenses paid for the day if I met with some one at the mountain to discuss tree work, like discuss a job, sign a contract or receive payment.

When I was a volunteer patroller I could, so long as I "only" volunteered with this equipment.

When I worked for a company and had to wear steel toes and jeans, I could not write them off.

When I work for myself now, obviously I can. The accountant brought up the fact that while yes I can write off my chainsaws 100%, how did I cut fire wood and clear rec trails at my house???? I replied, In the course of testing and training my equipment for work. Like putting a gym and hot tub in your shop because you are a climber/athlete. It would be a "flag" if the gym was in your house, I do not even write my office in my house off, I clearly do not use it 100% for tree work. When I have a shop and the office is in there it will be written off.

Some situations are cut and dry some are using the right words to benefit your cause. Crafty accounting.

Sounds like you should get a dba and start a business.

 

[jodystreeserv3]

Quick question.you know how some people try to write-off everything. Maybe they(owner) go out of town to make an estimate, stay there all day and go out to eat a few times. Say they spend $100. Is it worth it to write if off, or should they use there personel account instead of the business.If this is done a few times a month that could be $200-$300 that could have stayed in the business account and payed a monthly bill.

 

[allmark]

Section 179 is for depreciating in the same year purchased. Meals can only be partially deducted