I have a business license can I use my tools of the trade exemption even though I don't show a profit?
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Alaska allows a pretty generous 'Tools of the Trade' exemption, that is better than what the Federal rules give. Here is a link to the list of state vs. Federal:
"To go bravely forward is to invite a miracle."
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Yes I know, I updated/added this to the Wiki two days ago.Alaska allows a pretty generous 'Tools of the Trade' exemption, that is better than what the Federal rules give. Here is a link to the list of state vs. Federal:
http://www.akb.uscourts.gov/exemptions0410.pdf
But I'm asking if I can use it even though I don't show a profit, ie. is it considered a valid business? Will it be a stumbling block for me?Comment
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You'll have to look at your state exemptions and ask your lawyer. In my state, MN, it the law says you can deduct X number of $'s for tools of trade. Personally, I would contact a lawyer but, at least with my state, it does not ask whether you did, in fact, use these in your trade or made a profit/loss, only that you are what you say you are (a carpenter for example) and thus have these tools to make your livelihood.
Check your state laws and, if you haven't already done so, consult with an attorney as to the laws in your state.
Of course, you have to be licensed for that to be effective. I couldn't just say I was a carpenter and that is why I have so many tools.Comment
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