Tools over a few hundred dollars belongs on Line 13, depreciation and section 179 expense deduction.
Why line 13
Hand tools and blades that get used up or replaced within a year are supplies on line 22, which is where most of a tradesperson's tool spending belongs. A tool with a real life beyond the year and a cost that is not trivial, such as a table saw or a compressor, is an asset, so its cost is recovered on line 13 after being listed on Form 4562. The de minimis safe harbour is the practical dividing line: items under the per-item dollar limit set by regulation can simply be expensed, while bigger pieces go on the asset list.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so tools over a few hundred dollars lands on Line 13 without you sorting it.
Start for freeWhat tools over a few hundred dollars is confused with
- Line 22, supplies
- If the tool is consumed, broken or replaced inside a year, or falls under your de minimis expensing policy, it is supplies on line 22.
- Line 21, repairs and maintenance
- Servicing, sharpening and repairing tools you already own is repairs and maintenance on line 21.
- Line 20a, rent or lease of vehicles, machinery and equipment
- A tool hired for one job from a rental yard is equipment rent on line 20a.
Examples that belong on line 13
- A 1,300 dollar table saw for a finish carpenter
- An 800 dollar compressor and hose reel
- A 2,400 dollar scaffold tower set
- A 600 dollar impact wrench set kept for years
- A 450 dollar laser level treated as an asset rather than supplies
What does not belong here
- Blades, bits, fasteners and consumables, which are line 22
- Tools you also use mainly at home, beyond their business share
- Rented plant, which is line 20a
- Tool repairs, which are line 21
The limit that applies
The de minimis safe harbour amount for a business without audited financial statements has been 2,500 dollars per item or invoice since 2016, and it is an election made with the return rather than a default.
What to keep
Keep receipts showing each tool and its cost, and keep a written de minimis expensing policy if you rely on it. The receipt amount per item is what decides line 13 against line 22.
Other expenses on line 13
| Expense | Line |
|---|---|
| a business sign | Schedule C, Line 13 |
| a camera and lenses | Schedule C, Line 13 |
| a desk and office chair | Schedule C, Line 13 |
| a laptop or computer | Schedule C, Line 13 |
| a laptop used 70 percent for work | Schedule C, Line 13 |
| a phone handset | Schedule C, Line 13 |
| a trailer | Schedule C, Line 13 |
| capital expenditures | Schedule C, Line 13 |
| commercial kitchen equipment | Schedule C, Line 13 |
| software bought outright | Schedule C, Line 13 |
Related lookups
- Where do job materials go on Schedule C?
- Where does a laptop repair go on Schedule C?
- Where do car lease payments go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so tools over a few hundred dollars lands on Line 13 without you sorting it.
Start for free