Schedule C: 'Tools of the Trade' vs 'Household Goods'

[Walter]

I'm chugging right along finally with two forms left to complete before we file (Schedules B and C), but have a question on where to place certain items we would like to claim as exempt.

Given that the filer is on Social Security Disability and will not return to work, can you still classify 'tools' as 'tools of the trade,' though there really isn't a 'trade' anymore?

For example, the couple of items I am trying to decide where to place:

-Riding Lawnmower
-Snow Blower
-Jigsaw, table saw, misc. power tools, etc

I would hate to classify them under the tools of the trade exemption for NY, only to find that since the debtor will not be returning to work, that he is not entitled to that exemption...so wondering if these could also be grouped under the 'household goods' category?

We are far below the allowable household goods exemption, so no problem lumping them in there, but would hate to find that they can't go in there, too...just not sure which exemption would be most applicable.

[nickifan]

I'll be curious to read the replies.

And if I may briefly hijack your thread in a related vein...can anyone say if it would be fairly common to include as "tools of the trade" exemption my (5-year-old) computer and (8-year-old) printer, if my primary career has been as a freelance writer/editor? I haven't worked at that in a few years though...would "current job" be the primary factor?

I'll ask the atty but just thought I'd throw it out there! Thanks.

[backtoschool]

If the OP was carpenter or handyman of some sort those tools could be claimed as tools of the trade. There is no way of knowing if the OP will use them part-time to pick up some cash, etc.... you can't completely predict the future, so I would claim them.

Same with the computer and printer, but really they are so old that they are basically worth what you would get a a garage sale for them at this point. (ie $100 for both or less. )

[sawdust14]

I am not disabled, but I am collecting social security and working at a job. It has been 15 months since I quit my woodworking business but was able to keep all my tools under "tools of trade". My attorney told me in our district it is, "are at present being used or have been used to make a living".

[BKDefender]

For a lawnmower I would just lump it in with household goods. Technically it's required to be 'necessary household goods' and I think a lawnmower is a necessary household good if you want to keep the lawn mowed and be in compliance with your HOA. Same for the snowblower if you get snow in your area. As for the jigsaw, table saw, etc, if you ever do any repairs on your home yourself then those are arguably necessary household goods.

Now if you have a professional carpentry workshop and you're no longer a carpenter that's not going to fly, but a few tools, wrenches, saws, tools, lawnmower & snowblower - I've already put those under household goods (minus the snowblower) without any problems.

--William

[Walter]

Thanks, everyone; I think I'll do just that, BKDefender...lump it all in the safer, less ambiguous 'household goods' and if there is a problem, perhaps raise an argument about being tools of the trade, then, especially for the power tools.

Lawnmower and snowblower are well over 10+ years old, so if push came to shove, the Trustee is welcome to them...but thought I would exempt them under one of these two categories and see how it goes.

Thanks again, everyone.

PS...maybe one more question:

I am listing far more than most, I suspect, on Schedule B...actually build a continuation sheet and have 4 of them populated with various junk.

I was breaking them up by rooms when listing them, but perhaps a better strategy would be to list them in descending order by value?

And I guess I can't aggregate everything under 'household goods' on Schedule C, right? So every single item itemized on Schedule B should make its way to Schedule C, if claiming all is exempt, right?

[BKDefender]

Hmmm..... When I file for clients I generally list them as:
"General household goods: television, desks, bedroom furniture, living room furniture, home/car repair tools, lawnmower, etc. $X,000" (with X,000 being the closest estimate from clients.) I've had the trustee ask how many televisions and what type of home & car repair tools but when the client tells him 'A ~2yr old 42" flat screen in the living room, a 32" tube in the bedroom and a 27" in my kid's room' and 'usual car repair tools - some wrenches, hammers, table saw, jack stands - most of them a few years old", then the trustee just says 'Ok, thanks'. I think it's more to see if the person will be nervous when answering and stammer making it seem they're lying.

The only time I ever detailed it out was when the client turned in an motor home and we listed the RV jacks and RV stands as a separate item which the trustee objected to as not being 'necessary' now that the motor home was surrendered. They were only worth about $50 so I told him they weighed about 50lbs, the clients have already moved out of state, but he was more than welcome to take them and sell them. I'm still waiting for his response.

--William

[nickifan]

Thanks, everyone; I think I'll do just that, BKDefender...lump it all in the safer, less ambiguous 'household goods' and if there is a problem, perhaps raise an argument about being tools of the trade, then, especially for the power tools.


I am listing far more than most, I suspect, on Schedule B...actually build a continuation sheet and have 4 of them populated with various junk.

I was breaking them up by rooms when listing them, but perhaps a better strategy would be to list them in descending order by value?

And I guess I can't aggregate everything under 'household goods' on Schedule C, right? So every single item itemized on Schedule B should make its way to Schedule C, if claiming all is exempt, right?

Walter, just curious...are you filing pro se? Or are you just trying to do as much paperwork upfront for your atty as you can? I don't even know what Sked B or C are...should I? ((for ch 7)

Backtoschool, when I typed that info about my old computer stuff I knew someone would chuckle just reading it <G>...I know they're not worth much. I just thought I'd try to tuck stuff into the "special" categories (tools of trade, jewelry, etc.) to save as much "room" in the general categories.

[backtoschool]

Walter, just curious...are you filing pro se? Or are you just trying to do as much paperwork upfront for your atty as you can? I don't even know what Sked B or C are...should I? ((for ch 7)

Backtoschool, when I typed that info about my old computer stuff I knew someone would chuckle just reading it <G>...I know they're not worth much. I just thought I'd try to tuck stuff into the "special" categories (tools of trade, jewelry, etc.) to save as much "room" in the general categories.

Well my guess is that you saved yourself $100 in your "household goods" category.

If you are a writer you can put your laptop and printer in the tools of the trade category.