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Old 05-26-2019, 03:22 AM
 
Location: Boston
14 posts, read 10,039 times
Reputation: 31

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This is a question for you mechanics out there. With the new tax code we've had since 2018, how are any of you still writing off your tools you have to do your job?

Just starting off in the business, and the boss wants me to buy three grand of new tools this year.
I also have certifications that cost a lot of $$ to renew every year.

Is it true that job expenses for mechanics and painters in this trade cannot be written off anymore?
Maybe on state taxes I would be able to write off these expenses?

I've heard that mechanics are getting hit the worst by the change,
as it is one of the most expensive careers in regards to purchases you have to make on your own.

Any creative ideas?
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Old 05-26-2019, 04:49 AM
 
13,011 posts, read 13,044,002 times
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Not a mechanic, but I know a bit about some tax law.

One of the problems with the recently increased exemption levels is that it eliminated many exemptions for the working middle class. You could also view it as simplifying the tax code for everybody, but the fact remains that it wasn’t particularly beneficial to many people, mechanics included.

One way to deduct tools would be to go into business for yourself, but that increases costs for you as well. You would be paid on a 1099 basis by your shop, but you would be required to purchase your own health insurance, give up vacation benefits, and pay self-employment tax. You would most likely be paid only by the job, but that would require an entirely different rate structure.

Keep in mind that deducting tools would only give you a deduction on your taxes, not a credit. Essentially under the old system a $3000 tool purchase would reduce your taxes by about $700, depending on your tax bracket.

Tools are a big expense for mechanics.
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