Where deduct tools used in home business?
I have a home business (LLC) that includes selling items I assemble from parts. Am I able to deduct the cost of tools, containers, etc?
I have a home business (LLC) that includes selling items I assemble from parts. Am I able to deduct the cost of tools, containers, etc?
You can either depreciate the tools, containers, and machinery if their cost bases are significant, deduct them as supplies if their costs are minimal, or use the de minimis safe harbor for items that cost $2,500 or less.
See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations
Untitled.png2.png
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.