well, i have a pre-season tax question. every tool i have bought from jan 1st until today i have kept track of. problem is i have receipts for only 900 of it from the tool truck/stores. I have bought a lot of my tools second hand or traded labor for tools. If i paid full price for everything i bought, im around 9600 in tools this past year
i obviously dont have 9600 to spend on tools. i got into all my used tools for damn good prices-- so good that i was buying doubles of shit i allready had like snap on extensions. thing is, im afraid to claim the tools over the single dependant tax break on fed taxes. as you get the standardized 3300 tax break. even saying i bought my tools used, plus the new shit i got receipts for, i feel i can claim 4k range and have it be believable not throw out a red flag. but i am afraid to do so for fear of being audited w/o a receipt.
If you are sure you’re doing it honestly then you have nothing to fear. If they do in fact audit you, the receipt (or lack thereof) may be an issue. If you did in fact buy enough tools to make the dollar amount you are claiming, then I don’t see a problem. You may want to ask a tax professional about the specifics though.
Are you looking to claim $4000 in addition to the standard $3300 or just $4000 total? If you are just looking for the extra $700 deduction it is probably not worth the risk of hassle as a $700 deduction will most likely only knock your taxes down $150. As mentioned, lack of a receipts is a problem as without them you really have no proof in an audit. Also keep in mind, if you traded services for tools, those tools you received are income which I’m guessing was not reported (or taxed).
i think this will be your issue if you run into an audit. income is income whether its money or not.
my mom does tax consulting at price waterhouse… shoot me a PM if you need her phone number or email. i’m sure she wouldnt mind covering a quick question.
im looking to claim just 4k total. if i dont depreciate my tool box this year, that will get me down to under the 3300. so maybe ill wait a year to claim my tool box, and just say i spent 3k in tools and file it on my state.
as last 3 years i claimed roughly 1200-2300 in tools per year. this year i just had more money to spend that was not going into cars.
If I didn’t have receipts, there would be no way I would claiming it. Not that I think it would throw the red flag, but if you go itemized, and claim $4000.00 in tools, what about all the other shit you claim when you itemize? You aren’t seriously only going to claim tools are you?
Hell I claim all that stuff, and still claim the fixed deduction.
If you doing long form, I would be claiming a vehicle as a work ride, then you can claim gas, oil, parts, ect. Also normal living expenses, capitial losses, ect…