Small tools under the de minimis threshold belongs on Line 22, supplies.
Why line 22
Hand tools and low cost power tools that get used up, lost or broken on site are treated as supplies on line 22 rather than entered on a depreciation schedule. Two things keep them there: they do not last long in practice, and the de minimis safe harbour lets a taxpayer without an applicable financial statement elect to expense items up to a set amount per item or invoice. Above that amount, or where the tool plainly lasts for years, it is a capital asset recovered on Form 4562 through line 13.
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 small tools under the de minimis threshold lands on Line 22 without you sorting it.
Start for freeWhat small tools under the de minimis threshold is confused with
- Line 13, depreciation and section 179 expense deduction
- A tool that lasts more than a year and costs more than the de minimis amount is a capital asset on line 13; a cheap or short lived tool is line 22.
- Line 21, repairs and maintenance
- Buying a cheap replacement tool is line 22, while paying to repair a tool you own is repairs and maintenance on line 21.
- Form 4562, form 4562, carried to schedule c line 13
- Anything you elect to expense under section 179 instead of the de minimis safe harbour is reported on Form 4562, which carries to line 13.
Examples that belong on line 22
- $38 for a set of spade bits
- $120 for a cordless impact driver bought to replace a lost one
- $65 of utility knives, tape measures and clamps
- $210 for a budget tile saw expensed under the de minimis safe harbour
- $90 of drill bits and hole saws consumed over a quarter
What does not belong here
- A tool above the de minimis amount with years of life, which is depreciated.
- A tool kept at home for personal projects.
- Repairs to a tool you own, which are line 21.
- A vehicle mounted rack or upfit, which is capitalised with the vehicle.
The limit that applies
De minimis safe harbour: a taxpayer with no applicable financial statement can elect to expense items costing up to $2,500 per item or per invoice, the figure in force for tax year 2026.
What to keep
Keep the receipts and, for the de minimis safe harbour, a written accounting procedure in place at the start of the year plus consistent treatment on your books. The election is annual and is made on the return.
Other expenses on line 22
| Expense | Line |
|---|---|
| a dog groomer's shampoo | Schedule C, Line 22 |
| branded uniforms and workwear | Schedule C, Line 22 |
| cleaning chemicals and cloths | Schedule C, Line 22 |
| clinic and lab disposables | Schedule C, Line 22 |
| materials a tradesperson consumes on a job | Schedule C, Line 22 |
| memory cards for a camera | Schedule C, Line 22 |
| packaging and shipping boxes | Schedule C, Line 22 |
| PPE, work gloves and safety boots | Schedule C, Line 22 |
| salon color and product used on clients | Schedule C, Line 22 |
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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 small tools under the de minimis threshold lands on Line 22 without you sorting it.
Start for free