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October 27, 2021
Question

Mobile mechanic write off for tools

  • October 27, 2021
  • 1 reply
  • 0 views

With starting a mobile mechanic business, how do you deduct the expenses for tools?  Can you deduct the full amount spent if you have a receipt, or do you have to amortize the write off over a period of years/months?  For instance a $1600 expense was incurred for the purchase of multiple wrenches and socks.  Do I write that entire amount off in my 2021 tax return?

    1 reply

    John-H2021
    October 27, 2021

    Hello Dianeth,

     

    If you purchased the tools before you started the business you will deduct these as start up cost on the schedule C.

    If you purchased them once the business is opened you have 2 options.

    1. you can deduct them fully as an expense or

    2. you can depreciate them

     

    Depreciating them will let you deduct a portion of the cost over several years helping you offset your income for those years.

     

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