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The IRS simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500the safe harbor threshold for deducting certain capital items.
The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.
The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016.
That actually means - you may simply deduct the cost of tools that are less than $2500 without capitalizing and without using section 179.
Here is a referenced document
Let me know if you need any help with reporting.
Per Item and per invoice.There is no specific form.You may just list these expenses as Other expenses.
On schedule C in Part V
I think you do track your income and expenses ? - so yes.
If your shop is treated as a separate property - that is NOT a rental property - that is a property used for business operations.
I bet that is correct area - but if you attach a form here - I will verify.
Mostly looks clear.
I am not sure where you got deduction for utilities?Are you using a part of your home for business?That must be separate form for that.
Also - these are screens.I prefer to see actual tax forms.
Ok - that explains.
So the shop is a separate stricture and that are utilities related to that structure.
No need any special form.
But you will need to depreciate the value of shop.
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