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S
SCORP2
January 31, 2023
Question

Deducting for tools, Business return

  • January 31, 2023
  • 1 reply
  • 0 views

I'm a S-corp LLC and I built an office last year using my own people and a contractor. I purchased a lot of tools for the construction.  How do I know if I should deduct the cost of a tool, or depreciate the tool? If I deduct a smaller tool, what would that be listed as? Office supply?

1 reply

M
MinhT1
January 31, 2023

You can expense tools costing less than $2,500 each if you make the de minimis safe harbor election.

 

They can be expensed as a Miscellaneous expense described as Equipment costing less than $2,500 each.

 

Please read this IRS document for more information.

 

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    S
    SCORP2Author
    January 31, 2023

    I don't see a category called Miscellaneous expense in the business return

    M
    MinhT1
    January 31, 2023

    In the  Business return, you can deduct this expense under All Other Expenses and describe it as Equipment costing less than $2,500 each.

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