Repair / Maintenance Tools

[James Quillen]

I've bought a property and I'm getting it ready to rent. I have not publicized it as available, so I'm not operating under the safe havens.

How are hand tools deducted (if at all)? While I understand major equipment is depreciated or deducted with a safe haven when applicable, I haven't seen anything in the books I'm reading about hand tools. I just had to buy a set of channel lock pliers and a drain snake to repair a blocked sink drain. I know these tools will last more than one year. I know I will need to buy more tools before the property is put into service. 

Can this and future tools purchased prior to the property being put in service be deducted under start up costs? In the NOLO "Every Landlord's Tax Deduction Guide" an example lists "Repairs" as a start up cost but doesn't go into much more detail. I will deduct the parts to fix the sink, but what about the tools?

Same for tools after the property is put into service. Can I deduct them under one of the safe havens? If I max out a safe haven, will I need to depreciate tools, regardless of how little they cost?

[Joe Martella]

I think that you are overthinking this.  If I need a tool to do a repair at a rental property, I generally purchase the items needed and just list it as a cost for repairs.  I don't know if there is depreciation for tools. I am sure there is if it is a sizeable purchase, but I have purchased all kinds of table saws, miter saws among other things to do repairs.  They last longer and even with the tool purchase it is still cheaper than having a contractor doing it.  

I have tools that I only needed once for a job and it was still cheaper.  The bigger headache sometimes is storing the damn things.

Try out this thread:

Ask me (a CPA) anything about taxes relating to real estate (biggerpockets.com)