can a welding machine purchase be claim your taxes
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  1. #1
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    can a welding machine purchase be claim your taxes

    I am currently in school taking a welding class and i plan to write off the welding fees a pay and equipment I have purchased. Now I am in the market of getting a new miller MIG machine and practice at home since the current MIG at school are broken. Can I write this off.

  2. #2
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    Re: can a welding machine purchase be claim your taxes

    a question best asked your accountant.
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  3. #3
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    Re: can a welding machine purchase be claim your taxes

    Are you writing this off as an educational expense? Are you writing off the car you use to get to school? Are you writing off the house that you live in, where you study for school? How about the food that you eat, to keep you alive while you are studying?

    Check out http://www.irs.gov/publications/p970...link1000178335

    extract:
    Qualified Related expenses. Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance.

    Does the school require everyone in the class to purchase a MIG welder from the school? Didn't think so.

    So no go.

    On the other hand.. will you ever be working for yourself as an independent welder in the future? That has some tax saving opportunities, but you gotta read the fine print. Buy the welder you want now.. and when you are ready to start the business, I'm pretty sure you can transfer the thing from you (as a personally owned hobby item) to you as a business expense (at prevaling rates for used equipment, not at original retail purchase price).

    Good luck with it.
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  4. #4
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    Re: can a welding machine purchase be claim your taxes

    Quote Originally Posted by zipzit View Post
    Are you writing this off as an educational expense? Are you writing off the car you use to get to school? Are you writing off the house that you live in, where you study for school? How about the food that you eat, to keep you alive while you are studying?

    Check out http://www.irs.gov/publications/p970...link1000178335

    extract:
    Qualified Related expenses. Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance.

    Does the school require everyone in the class to purchase a MIG welder from the school? Didn't think so.

    So no go.

    On the other hand.. will you ever be working for yourself as an independent welder in the future? That has some tax saving opportunities, but you gotta read the fine print. Buy the welder you want now.. and when you are ready to start the business, I'm pretty sure you can transfer the thing from you (as a personally owned hobby item) to you as a business expense (at prevaling rates for used equipment, not at original retail purchase price).

    Good luck with it.
    --zip
    I was thinking it was to good to be true. Some if the guys in class where talking about it. So I guess my helmet and welding jacket are the only thing I can write off.

  5. #5
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    Re: can a welding machine purchase be claim your taxes

    I think it largely depends on the tax laws of the country one lives in and earn money in plus also how good your accountant is.
    I have my own IT project management company and I have bought most power tools known to man under the pretext that I want the option of doing cabling contracts plus also about 15K worth of performance work on my car.
    My accountant has got it all passed off as business expenses, even though he abuses me at times. He always warns me when I cross the line.

    Get a good accountant (think as if you're looking for a good lawyer).

  6. #6
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    Re: can a welding machine purchase be claim your taxes

    Sure,
    If you start a business. But you'd also have to do enough $$ worth of work to justify a deduction.
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  7. #7
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    Re: can a welding machine purchase be claim your taxes

    lets see...you are a student welder.....just how much income do you have were this could even save you much money? I once had my AGI in the red with so many deductions (back in the car donation heydays ). It could have been quite a bit higher and I still would have got the same return.

    FWIW, you probably could sneak it by as a student expense "needed for homework", especially if you bring in some of your homework for the instructor to critique.

    If you do start a business down the road, you could lease the machine to the business and pay yourself for it.

  8. #8
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    Re: can a welding machine purchase be claim your taxes

    I'm in my 4th year of getting mechanical engineering ba, masters right after, but up in lovely NY about all you can claim is tuition & books.
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  9. #9
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    Re: can a welding machine purchase be claim your taxes

    isn't that a BSME; and by the way, our tax system is a federal system; that is unless lovely NY is in another country. message boards, for the most part, are for humor only. posts like this one provide it.

  10. #10
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    Re: can a welding machine purchase be claim your taxes

    CHECK WITH A TAX ADVISOR FIRST!


    Even as as student you can start a business and purchase the welder as business expenses. "office supplies" The purchase can be deducted the first year, and then depreciation after that on some items, other's it's straight depreciation. and others are purchase price only. This includes tools, consumables, and materials for R&D (so long as you paid taxes on them).

    Even if you don't have any "work" in your first year(or more). R&D is still deductable, so long as you've done the legal steps to start a business. Be careful though. some business types have to have their own filing separate from yours.
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  11. #11
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    Re: can a welding machine purchase be claim your taxes

    Got me on that one, I don't know why I was thinking state dependent when everything school related gets claimed on federal. As for ba abbreviation, wasn't paying attention to auto-correct on my Xoom, just trying to post some info fast for op before class.Info was still correct. Also depending how many credit hours your classes give you, you might qualify for the "hope" credit which is a credit that's close to the price of a welder itself.
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  12. #12
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    Re: can a welding machine purchase be claim your taxes

    Quote Originally Posted by ThorsHammer View Post
    Even if you don't have any "work" in your first year(or more). R&D is still deductable, so long as you've done the legal steps to start a business.
    Perhaps, BUT, don't expect to show a loss year after year and not get in trouble.
    If you are actually starting a business, you can take that deduction. But, if you don't show a profit within three years, you'll have some splain'n to do.

  13. #13
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    Re: can a welding machine purchase be claim your taxes

    The only real answer anyone here could give you is maybe.

    The tax situation can depend so much on the details, what is involved and how you are trying to apply it. Best a lot of leg work yourself for openers and then maybe some tax advice based on very specific details and circumstances. You can twist a lot of things around different ways but usually it means being able to plan it out in advance, knowing what to do before it happens is best. Trying to apply rules after the fact can sometimes be tricky.

    The one thing for sure, be able to document anything and everything forever. It is a paperwork game. Keep the records, a copy for yourself. (forever)

    Never depend on accountants alone. Nothing like you knowing the tax situations as they apply to you. Mostly it repeats the same every year but not always. Damn Government, needs tax reform bad, Lord will we all survive it. They do not understand that small word SIMPLE
    Last edited by CosmicRambler; 10-10-2011 at 02:35 PM. Reason: To delete, got posted before I was ready

  14. #14
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    Re: can a welding machine purchase be claim your taxes

    Quote Originally Posted by mengineer View Post
    I'm in my 4th year of getting mechanical engineering ba, masters right after, but up in lovely NY about all you can claim is tuition & books.

    If you were to buy an Auto-CAD license, I am pretty sure you could claim that and the computer you run it on too. even if not at the state level, at least Federally.

  15. #15
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    Re: can a welding machine purchase be claim your taxes

    The only real answer anyone here could give you is maybe. Are you currently employed and is the welding school part time? Do you have an income that requires you to file taxes now / this year???

    The tax situation can depend so much on the details, what is involved and how you are trying to apply it. Best a lot of leg work yourself for openers and then maybe some tax advice based on very specific details and circumstances. You can twist a lot of things around different ways but usually it means being able to plan it out in advance, knowing what to do before it happens is best. Trying to apply rules after the fact can sometimes be tricky.

    The one thing for sure, be able to document anything and everything forever. It is a paperwork game. Keep the records, a copy for yourself. (forever)

    Never depend on accountants alone. Nothing like you knowing the tax situations as they apply to you. Mostly it repeats the same every year but not always. Damn Government, needs tax reform bad, Lord will we all survive it. They do not understand that small word SIMPLE

    As a general rule normal schooling is not tax deductable against income you might earn in the future. The tricky part is always when and how long, etc, etc expenses can be deducted for individuals against what income, earned when. Simple is not in the cards.

    There is a general principle of carry overs in some modes but again so specific with tons of details and in general it must have been from a valid filing in some prior year. Most normal full time students probably don't even file taxes while in school. Continuing / refresher type eduction is usually deductable if not compensated by an employer. It is all where you fit in the scheme of things. If in doubt file for that year to establish a basis in future years.

    So there may be a potential to claim in a filing that you are in training to be a welder. Got to be some credits along that line. That might be able to be applied to any present income if you are required to file taxes and have a tax burden for say this year, from whatever source. Can get a head ache just thinking about it all. Yeah, I do my own taxes and it ain't easy. I would start with that direction, thinking more along the credits path, some special jobs type program and see if you qualify for any of it or can swing it around in that direction. Many credits do have the potential for carry over to future years.

    Have fun in Tax World.

  16. #16
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    Re: can a welding machine purchase be claim your taxes

    Thanks for the info guys. Lots of good advice I can share with the class. P.s this post was not intended to be for "humor" but for knowledge. I think the best advice comes experience from people that are in the same field.

  17. #17
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    Re: can a welding machine purchase be claim your taxes

    I believe that the great Obama added a provision to the tax code for 2011 and 2012 allowing 100% deduction for business equipment. In the past, we used to write off the expense over several years.

    As stated above, check with your accountant. Form a business, get a tax #, open a checking account, make a capital investment in your new business. Then buy the welder.

    You can do this if you have plans to actually start a welding business. If you are just trying to not pay taxes, you will eventually get caught and it will not be worth it.

    Remember, you can deduct just about anything and get a slap on the wrist if it wasn't allowed. You will then have to pay back those taxes. If you don't report income, it's handcuff time.
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  18. #18
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    Re: can a welding machine purchase be claim your taxes

    Last year I deducted every tool I purchased including my welders. Every tool payment, even uniforms, phone bill, and fuel. I Maybe I screwed up, but my accountant (mother in law) who is a certified cpa told me I could so I did. Everything from scan tools to wrenches got deducted last year, but not the whole purchase price just what I had paid during the year. I do a lot of tool truck biz.

  19. #19
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    Re: can a welding machine purchase be claim your taxes

    Quote Originally Posted by rlitman View Post
    Perhaps, BUT, don't expect to show a loss year after year and not get in trouble.
    If you are actually starting a business, you can take that deduction. But, if you don't show a profit within three years, you'll have some splain'n to do.
    And if they start looking they might declare it a hobby and go back and audit the previous years. The profit doesn't have to be much, just have to show it's not a hobby. Since the OP is in school to learn to weld, might as well set up a legit side biz.

  20. #20
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    Re: can a welding machine purchase be claim your taxes

    Quote Originally Posted by Drf255 View Post
    I believe that the great Obama added a provision to the tax code for 2011 and 2012 allowing 100% deduction for business equipment. In the past, we used to write off the expense over several years.

    As stated above, check with your accountant. Form a business, get a tax #, open a checking account, make a capital investment in your new business. Then buy the welder.

    You can do this if you have plans to actually start a welding business. If you are just trying to not pay taxes, you will eventually get caught and it will not be worth it.

    Remember, you can deduct just about anything and get a slap on the wrist if it wasn't allowed. You will then have to pay back those taxes. If you don't report income, it's handcuff time.
    Obama did not add the Deduction- it has been around for a while . The Stimulus Act did add to $ amount in Section 179.

    Most people know it as the Hummer Tax Deduction because inside Section 179 there are provisions for taking the full amount of a new vehicle purchase and with SUV's becoming quite large- at least as far back as 1997- the SUV's actually fell within the guidelines of 6,000lb GVWR. A small Loophole per say and has since been somewhat closed as the parameters for vehicles that qualify under Section 179 have changed
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  21. #21
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    Re: can a welding machine purchase be claim your taxes

    Yeah Brock, the SUV loopholes been around for years. I know that there was some change in the code that specifically allowed equipment deductions at 100% for ? 2010 and 2011.

    I know we used to deduct it over a few years time, but that new law changed it somehow. One of the few laws that could have actually stimulated the economy.

    As for the O man, I'm not trying to give him any credit. I respect the man for the position that he holds, but not a drop personally.
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  22. #22
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    Re: can a welding machine purchase be claim your taxes

    My son worked while he was going to college a few years ago. All the tools that he had to buy for the work he was doing could be either depreciated or deducted. He was a full time student working about 25-30 hours /week. Some of the items were ones needed for School, not required others were wanted for work and could justify the better quality tools and equipment because he was working almost full time. Dicey area, just one or two things changing can really put a damper on your day.

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