Allan Martin wrote:
- quote -

One school of thought maintains that the form 4562 for the
section 179 is essential and decries simply entering the
unmitigated costs directly on form 2106, or even schedule a
for that matter. I tend to agree, to protect the client just
in case.

Cheer$,
Harlan Lunsford, EA n LA

p.s. I saw a schedule A couple of weeks ago (I was efiling
it as prepared by another pro) which listed 8000$ in small
tools for an employed body repairman. Surely those tools
last more than one year.

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"Ernie Klein" <eckleinspammenot[at]pacbell.net> wrote:

- quote -

You can simply enter the cost as small tools expense on the
2106 or you can take a section 179 deduction for the full
amount of the cost of these items.

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- quote -

How do I handle butcher knives? Very carefully!

Claim Sec. 179 expensing election.

Jim Hayden EA

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My Son in law is employed as a butcher and as such is
required to supply his own high quality knives which wear
out rather quickly due to the heavy use they get. He
normally finds it necessary to replace the knives every
other year.

Pub 529 says that if the tools have a live _substantially_
more than the tax year they must be depreciated and to see
pub 946.

Pub 946 seems to be total overkill for small hand tools with
a live of 1 1/2 to 2 years.

I know that this is subject to the 2% limitation, and when
all the misc deductions are added up, they don't pass that
limit by much, but every little bit helps and I hate to give
up a valid deduction no matter how small it may be.

Do any of you tax pro's have butchers as clients, or others
whose tools have to be replaced often, but not each and
every year, and if so how do you handle this?

--
-Ernie-
"There are only two kinds of computer users -- those who have
suffered a catastrophic hard drive failure, and those who will."
Have you done your backup today?

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