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February 11, 2023
Question

For business purchases can items be submitted all together or does it have to be item by item now?

  • February 11, 2023
  • 1 reply
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In the past we could enter the overall amount spent on new tools and this year it looks like we have to line item with a purchase date for all new tools

1 reply

February 11, 2023

It depends. Small tools can be added together and entered into an appropriate category from the list suggested in TurboTax, such as Supplies, or you could itemize them under Other Miscellaneous Expenses. 

 

Larger items that are in the nature of equipment may need to be listed as assets and depreciated.

 

The IRS has a de minimis safe harbor election rule that allows eligible businesses to deduct tools as an expense as long as they cost $2,500 or less. If your business meets the requirements, you would include these tool expenses in the supplies line item on Schedule C.

 

See this tax tips article on the treatment of tools and other deductions for such professions as mechanics in TurboTax.

 

See this article for more information on depreciation of business assets in TurboTax.

 

 

 

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