I had purchased several hand tools for my sign business in 2020. Should I list each tool and its cost individually in expenses? Or would it be better to just combine all of the costs and simply report it as "Shop tools" with the total amount?
Thank you in advance.
04696
4 Replies
VolvoGirl
Level 15
May 12, 2021 1:15:36 PM
How much were they? If one item was over 2,500 you add it as an Asset. Otherwise you can just enter the total under Supplies or as Other Misc Exp. I put my small tools total under Other, Schedule C line 27a.
iogen70
Level 2
May 12, 2021 1:20:40 PM
The prices vary from $2 to $100. Things like wrenches, razor blades, utility knives on the low end and an impact wrench for $100 on the upper end. Should I just lump them all together? Thank you very much.
VolvoGirl
Level 15
May 12, 2021 1:27:20 PM
Yes, that's what I do. Just enter the total. Keep a backup list of the individual items. I use Quicken to track business expenses. Then just enter the totals into Turbo Tax.