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I know that with a vehicle, you take into account the number of miles driven for business use and the number driven for personal use. The difference is used when calculating personal responsibility vs business.

However, if you buy a tool for your business and also use it for personal use, does the same rule apply? And how do you calculate it? By the number of minutes it spends in your hand? What if the tool is deducted before you ever use it for personal use? What if you rarely use it for personal use? ... It could be a lot  of work to figure out how much of it goes to personal use. 

Thanks!

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rated:
jrbrown1991 said:   I know that with a vehicle, you take into account the number of miles driven for business use and the number driven for personal use. The difference is used when calculating personal responsibility vs business.

However, if you buy a tool for your business and also use it for personal use, does the same rule apply? And how do you calculate it? By the number of minutes it spends in your hand? What if the tool is deducted before you ever use it for personal use? What if you rarely use it for personal use? ... It could be a lot  of work to figure out how much of it goes to personal use. 

Thanks!

  What tool and what business?

rated:
What if the tool is a dildo?

rated:
fwuser12 said:   
jrbrown1991 said:   I know that with a vehicle, you take into account the number of miles driven for business use and the number driven for personal use. The difference is used when calculating personal responsibility vs business.

However, if you buy a tool for your business and also use it for personal use, does the same rule apply? And how do you calculate it? By the number of minutes it spends in your hand? What if the tool is deducted before you ever use it for personal use? What if you rarely use it for personal use? ... It could be a lot  of work to figure out how much of it goes to personal use. 

Thanks!

  What tool and what business?

  
Let's say a computer and monitor for your computer repair business (inexpensive example).. Or, a lens and camera for your photography business (moderately expensive example).. Of course, the first example could fall into the second business, too!

rated:
qcumber98 said:   What if the tool is a dildo?
  Well, in that case I'm sure the IRS has a publication (or perhaps a "private ruling") covering this.  Only thing is - usage might be prescribed in terms of "dollars per inches" instead of "dollars per mile" - unless you're really, really, quite the coxman.

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delete

rated:
Aside from vehicles, there are no expensive tools that one can use more than de minimus personal use. So the IRS doesn't care.

The only exception might be a high end smartphone as the IRS knows everyone has a cell phone

rated:
rufflesinc said:   Aside from vehicles, there are no expensive tools that one can use more than de minimus personal use. So the IRS doesn't care.

The only exception might be a high end smartphone as the IRS knows everyone has a cell phone

  
I looked up de minimus. Very good!

What about when the item is necessary for business, but is used mostly for personal things? i.e., a photographer who buys a monitor for editing pictures, but uses it most of the time for ... whatever. non-business email, school, etc.  
He doesn't get to deduct it at all, does he?
 

rated:
qcumber98 said:   What if the tool is a dildo?
  
You know, I never thought I would say this, but I'm willing to bet some people (likely in CA) have claimed these as business expenses. Gotta wonder what kind of face the IRS agent gives that is auditing those returns.

rated:
jrbrown1991 said:   rufflesinc said:   Aside from vehicles, there are no expensive tools that one can use more than de minimus personal use. So the IRS doesn't care.

The only exception might be a high end smartphone as the IRS knows everyone has a cell phone

  
I looked up de minimus. Very good!

What about when the item is necessary for business, but is used mostly for personal things? i.e., a photographer who buys a monitor for editing pictures, but uses it most of the time for ... whatever. non-business email, school, etc.  
He doesn't get to deduct it at all, does he?
 

If you are able to deduct it then it means you have business income. So it's not a fake business and the IRS can't tell if you use it for personal

A vehicle has an odometer so the IRS will know..

rated:
rufflesinc said:   
jrbrown1991 said:   
rufflesinc said:   Aside from vehicles, there are no expensive tools that one can use more than de minimus personal use. So the IRS doesn't care.

The only exception might be a high end smartphone as the IRS knows everyone has a cell phone

  
I looked up de minimus. Very good!

What about when the item is necessary for business, but is used mostly for personal things? i.e., a photographer who buys a monitor for editing pictures, but uses it most of the time for ... whatever. non-business email, school, etc.  
He doesn't get to deduct it at all, does he?

If you are able to deduct it then it means you have business income. So it's not a fake business and the IRS can't tell if you use it for personal

A vehicle has an odometer so the IRS will know..

  
Those are facts, but is it "legal?" In the case I mentioned, how is it *supposed* to be done?
Also, LOL at the person who changes his tire size so he can cheat his odo.. Or who simply changes the reading / buys an instrument cluster from eBay already coded to a reading he wants.

rated:
jrbrown1991 said:   
fwuser12 said:   
jrbrown1991 said:   I know that with a vehicle, you take into account the number of miles driven for business use and the number driven for personal use. The difference is used when calculating personal responsibility vs business.

However, if you buy a tool for your business and also use it for personal use, does the same rule apply? And how do you calculate it? By the number of minutes it spends in your hand? What if the tool is deducted before you ever use it for personal use? What if you rarely use it for personal use? ... It could be a lot  of work to figure out how much of it goes to personal use. 

Thanks!

  What tool and what business?

  
Let's say a computer and monitor for your computer repair business (inexpensive example).. Or, a lens and camera for your photography business (moderately expensive example).. Of course, the first example could fall into the second business, too!

  First of all, the item matters. The items you stated would be "listed property" and you would have to follow rules for those. For other items - how could we possibly give you examples of methods to reasonably determine the percentage of business use if you won't tell us what the item is?

rated:
qcumber98 said:   What if the tool is a dildo?
  My favorite concurrence ever: http://www.leagle.com/decision/1994879872SW2d7_1876/REGALADO%20v...
CURTISS BROWN, Justice, concurring. Here we go raising the price of dildos again. Since this appears to be the law in Texas I must concur.

I've been keeping this opinion Handy because I'm hoping there will be some point in my career that I'll be able to use it.

rated:
Marginoferror is right. It really does depend on what the equipment is.

Listed property :
https://www.irs.gov/publications/p534/ch03.html

rated:
justignoredem said:   
qcumber98 said:   What if the tool is a dildo?
  
You know, I never thought I would say this, but I'm willing to bet some people (likely in CA) have claimed these as business expenses. Gotta wonder what kind of face the IRS agent gives that is auditing those returns.

  It's a bit of a stretch (so to speak), but I couldn't help thinking of the famous Chesty Love ruling.  She got her deduction, by the way.  http://www.huffingtonpost.com/julian-block/tax-court-upholds-bus...

rated:
I have about $20,000 worth of photography and video equipment that I use for business.  Do I take pictures of my kids sometimes with it?  Sure.  But I absolutely deduct all of it from my business taxes.  My wife has a $75,000 piano that she uses to teach on.  Does she play a little for friends and family?  Sure, but we absolutely deducted the whole thing when we bought it.  There are huge numbers of things that have some dual use - as ruffles pointed out, it's important that you have the business income to support the deductions.  For us, it's very hard to separate personal and business use - every time I pick up the camera, I'm thinking about composition, white balance, exposure, motion, etc - all of these things are practice for my business use, and practice is an essential part of almost any skill.  Same for the piano - every time my wife touches the keys, that is practice that goes towards her paid work, whether that practice is for work or not. 

rated:
Thanks, guys!

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