Employee business expense tools

Well, it's not reeally the size of the tools, but their useful life.

If they are not expected to last beyond a year, then regardless of size or cost they are expense items.

As an example, GM purchases drill press dies that can easily run well over $1 million each, but the stamping takes a toll on those dies and they well might be expected, and do last only 8-9 months.

(Of course GM doesn't file a 1040 Schedule A :^)

For tools lasting longer than a year, you would dpreciate them and have the option of S 179.

If this year Misc deductions won't break the 2% barrier even with S 179, then don't 1179 them, and use S-L instead. Your 60,000 mechanic with only 3200 in tools needs lots more Misc 2% before your question becomes moot.

You don't actually file the depreciation form even if you do depreciate.

And for heaven's sake, please don't run the tools through a

Note: 2% of $60k = $1,200 < $3,200, so ??? If he 179'ed them, he'd get a $2k deduction (just for this alone), so why "needs lots more ....?"

Se what happens when I use a slide rule instead of an abacus? Misplaced decimals.....

How does one recapture depreciation on this item? Say he does 179 and gets $800 deduction. Then we he sells he only recaptures $800, and on which form is the gain/loss reported?