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atexakan
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I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

 
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I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

First, if your husband is reporting self-employment income on schedule C as a Santa, this might be a deductible expense on schedule C.  If he is not reporting taxable income on schedule C, this is not a deduction.  The sewing machine would have to be owned by "him" or "his business" rather than by "you" -- although this is a distinction without a difference if you are filing a joint return.

Second, you can't take any deduction for personal expenses.  You would have to show that you only use the sewing machine for this business and would not have bought the machine but for the business; or, you have to have some reasonable documentation showing the percentage of business use and the percentage of personal use, and only deduct the percentage of business use.  (Such as a diary where you write down the number of hours each day you use the machine and add up your business hours and personal hours.)  If you don't have a reasonable method to prove the percentage of business use, and are audited, the expense will likely be denied.

Third, because this is a piece of equipment expected to last more than one year, it is an "Asset", not an expense, and is subject to rules on depreciation.  You can generally deduct depreciable assets as if they were expenses if the total amount is less than $2500.  You would list the item as an asset, and then if you qualify to treat it as an expense, Turbotax will tell you that later.  You would list it with the percentage of business use that you determined.

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5 Replies

I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

Does he wear the Santa suit to charitable events? Do you use the sewing machine for anything else?

I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

Hi SweetieJean!  I've missed you!  It's nice to see you again.   🙂

I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

TY.
atexakan
New Member

I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

On this machine I've only made one Santa suit. Which he's worn to paying events. He has 3 other suits he has worn to various events. I haven't used the machine on any thing else so far.

I bought a new sewing machine to make my husbands Santa Suits can I deduct this from my taxes?

First, if your husband is reporting self-employment income on schedule C as a Santa, this might be a deductible expense on schedule C.  If he is not reporting taxable income on schedule C, this is not a deduction.  The sewing machine would have to be owned by "him" or "his business" rather than by "you" -- although this is a distinction without a difference if you are filing a joint return.

Second, you can't take any deduction for personal expenses.  You would have to show that you only use the sewing machine for this business and would not have bought the machine but for the business; or, you have to have some reasonable documentation showing the percentage of business use and the percentage of personal use, and only deduct the percentage of business use.  (Such as a diary where you write down the number of hours each day you use the machine and add up your business hours and personal hours.)  If you don't have a reasonable method to prove the percentage of business use, and are audited, the expense will likely be denied.

Third, because this is a piece of equipment expected to last more than one year, it is an "Asset", not an expense, and is subject to rules on depreciation.  You can generally deduct depreciable assets as if they were expenses if the total amount is less than $2500.  You would list the item as an asset, and then if you qualify to treat it as an expense, Turbotax will tell you that later.  You would list it with the percentage of business use that you determined.

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