Can I Write This Off?

Can I write off tools and supplies for my trade?

TL;DR

Yes, tools and supplies for your trade can generally be written off as business expenses.

Detailed Answer

Tools and supplies are deductible as business expenses if they are ordinary and necessary for your trade or business. This means they must be common and accepted in your field and helpful and appropriate for your business. For example, a carpenter can deduct the cost of hammers and saws, while a graphic designer can deduct design software. However, if the tools have a useful life of more than one year, they may need to be depreciated rather than expensed immediately.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 22 for Supplies or Line 13 for Depreciation if applicable

Real World Example

A plumber purchases a new set of wrenches and deducts the full cost as a business expense on their Schedule C for the year of purchase.

Calculation Required

A calculation is required for this deduction.

If the tools are to be depreciated, calculate the annual depreciation using the Modified Accelerated Cost Recovery System (MACRS).

Audit Risk & Documentation Tips

Keep receipts and records of all purchases, including the date, amount, and business purpose. Maintain a log of how and when the tools are used in your business to substantiate the deduction if audited.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

TradespeopleFreelancersSmall BusinessConstructionArtists

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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