are tools tax deductable?

[HoundLover]

now i was getting my hair cut yesterday and mentioned doing something else for work and doing grooming part time....and that i would just need the supplies. she mentioned that she thought that the tools might be tax deductable. if they are then i could do grooming out of my apartment (im only intrested in doing the smaller dogs really.) part time on the side. so...anyone know if they are or arent?
Hound

Stephen: A legal business in the eyes of the IRS can usually deduct the cost of tools, equipment and supplies but sometimes the cost has to be depreciated over a period of years, and not deducted in full in the tax year you bought them. The old rule of them used to be anything $100 or more might have to be depreciated over a period of years set by the IRS, but no it's not that simple any more. Check with the accountant, rules change yearly.

[pooh13]

For many years I have claimed my tools as a deduction ,however you have to claim the income that came with them as well.Although I have been an employee for several shops I have supplied my own tools and upkeep and maintenance of them it normally comes to a rounded out total for the year,for example: clippers/clipper repare $XXX blades and blade sharpening$xxx, scissor sharpening $xxx other grooming supplies such as ear cleaner,brushes,quickstop,cool lube,blade wash, shampoos,conditioners,anything you have to buy in order to do this job is tax deductible.However your state may differ and as Stephen has noted many tax rules have changed.Your tax preparer or accountant will know what you may or may not be able to claim.

[kats_melody]

Ask your accountant about the Section 179 rule. You MAY be able to deduct the cost of certain tools and equipment in the year you purchased them instead of depreciating them over a number of years.

[Helly]

I was a little surprised at some of the things my accountant told me I could deduct, even though I'm not an employee, not a business owner. Like my work clothes.

[groomingbymichelle]

I have spent the last five years as a tax pro (last two managing an office). you can deduct tools and supplies. Clippers, blades, scissors, can be depreciated over years, (179) or taken in that year. bigger investments like mobile van or building has to be 179. shampoo, towels, conditioner, blade and sharpening all should be taken in that year. but be sure the irs would like to know every penny you make even tips

[Petekids]

Use Tax

Some states and counties also have a use tax. I know we have to pay taxes on some types of equipment that we have purchased and paid sales tax on already - like holding cages, office equipment, clippers, kennels, dryers, etc. - and it's paid every year. This is on top of federal income tax, state income tax, state sales tax, property tax...the list goes on...

[kats_melody]

Ahh, the beauty of mobile grooming. My accountant advises that because everything fits in the mobile, I do not have to pay the yearly business property tax on fixtures and inventory. In my case, Florida gets its taxes on the vehicle registration fees, which went up a LOT this year.

If I had a shop, the state and the county would be getting more of my money, as everything in the shop would be subject to property tax.

Laura

[A1Mobile]

"In 2009, Section 179 will allow you to deduct from your tax liability the full purchase price of equipment purchases (up to $250,000). It also allows for a first-year 50% bonus depreciation for any over-limit equipment"

So...all of you who purchased a mobile unit this year...you can deduct the whole enchilada. Those 1000.00 shears purchased at Hershey? Shampoo, Les Poochs brushes and combs? Yup...that too. If your purchases go over 250K then you can deduct 50%.

[ferretlov]

yeah but then you have to pay intangible tax on your equitment.My husband is a printer and he has to pay on all his presses ,thermographs, paper cutters whatever Id check on it .