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helocin-nicole
New Member

Self-employed Mechanic Section 179

Looking at 2 different answers in the help section: Section 179 is for business owners only. But later, someone says they are Volvo mechanic and asks if their tools are deductable and is told yes. I'm assuming this is only if he is a self-employed mechanic? So he cannot not deduct the tools as a job-related expense if he just works at someone else's garage? Is that correct?
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Accepted Solutions
VolvoGirl
Level 15

Self-employed Mechanic Section 179

It depends on if you are self employed with 1099Misc income or you are an employee and get a W2.  If you are self employed you can expense tools on your schedule C either as a direct expense or depreciate it over several years.

And actually the same for W2 employee job expenses except it goes on Schedule A Itemized Deductions if you have enough total deductions to itemize (more than the Standard Deduction).  But for schedule A you can only deduct the amount OVER 2% of your AGI.

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2 Replies
VolvoGirl
Level 15

Self-employed Mechanic Section 179

It depends on if you are self employed with 1099Misc income or you are an employee and get a W2.  If you are self employed you can expense tools on your schedule C either as a direct expense or depreciate it over several years.

And actually the same for W2 employee job expenses except it goes on Schedule A Itemized Deductions if you have enough total deductions to itemize (more than the Standard Deduction).  But for schedule A you can only deduct the amount OVER 2% of your AGI.
taxmantonyf
New Member

Self-employed Mechanic Section 179

A If you receive a W-2 you are en employee and the tools are job related expenses reported on Schedule A.  

B If you receive a 1099 you are a sub contractor and the expense should be deductible on your schedule C.  

However, if you work on cars in addition to the garage you are employed at, use those tools for that activity and are paid for that activity you might be able to deduct some or all of that expense.  Might is a very strong qualifier.  This is not a simple question to answer without more details.  

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