@tf6217 wrote:
Thanks so much for the quick reply. Unfortunately he does receive a W2 from his employer ☹ So it appears the question is no longer relevant.
He may want to check the labor laws in his state, in some cases, it may not be legal for an employer to require an employee to purchase their own equipment as that effectively reduces the employee's income. On the other hand, there may be long-term benefits to owning his own equipment.
For independent contractors (and W-2 employees starting in 2026) it is possible to declare gifted equipment on your tax return. However this is subject to certain rules. Equipment items under $2500 can be treated as expenses, but only if he paid for them. If he received the items as a gift, he can't expense them, but he can list them as a business asset for depreciation, using the givers' original cost or the present fair market value, whichever is lower, as the basis for depreciation. Businesses must keep track of their assets, and there are sometimes tax consequences when an asset is sold or otherwise disposed of. This is why expensing items less than $2500 is often preferred, but that is not allowable for a gifted item.
