I'm a Software Engineer, and use computer related books at work. I also have a Safari account at
Someone told me that if they can be used for non-work purposes, then they are not deductible.
-Thanks
Your expenses are Unreimbursed Employee Business Expenses which are deductible after they exceed 2.5% of your AGI. It is always best for your employer to pay these expenses.
A mechanic who buys tools of his trade and then repairs his own car does not harm the tax status of his tools. Do it is unlikely that you will harm yours.
Dick
2% per
2.5% of AGI? A typo, or did I miss a recent tax change?
========================================= MODERATOR'S COMMENT: Typo: Should be 2.0%
That's true for uniforms -- if they have any potential for street wear outside of work, they're not deductible.
If property can easily be used for non-work (personal) purposes, it might be "listed" property (on an IRS list), but it is still potentially deductible subject to some additional rules. Examples of listed property are passenger vehicles, computers, cameras, etc.
But doesn't he have to account for the correct percent of business use of the tools? Sounds like less than 100% business use if he also uses the tools for personal purposes (his own and his friends and neighbors' cars, etc). Since a complete set of auto mechanic tools would normally be depreciated, the business percent would apply to the depreciable basis of the tools for purposes of unreimbursed employee expenses on Form 2106.
Books, especially technical ones which are frequently revised, are normally "consumed" (expensed) in the initial tax year, so I guess residual use for personal purposes would not be an problem. On the other hand, if the on-going subscription cost of the Safari service is part business, part personal, then the unreimbursed employee expense amount should be pro-rated accordingly. The best thing is to keep daily logs of the business-use hours of the service against total hours.
All the expenses should be ordinary and necessary expenses attributable to your job, to be potentially deductible on Form 2106 or directly on Schedule A.
-Mark Bole
All uniforms have a potential for street wear. You might not want to wear them for everyday use (say blue overalls), but you can. Now a suit and tie, that's probably not deductible.
Books and safarionline would not be listed property.
Agree with the rest of what you wrote.
Additionally, the 2% of AGI rule includes unreimbursed employee expenses as well as fees you pay people to manage your money, tax preparation fees, etc. Even so, all of these are rarely above 2% of your AGI. Furthermore, the deduction is not allowed under AMT.
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