Small contractor, first year of business in 2017

I have a new client. He worked for years as a tradesman in construction as a w-2 employee, then he started his own construction business mid-year 2017. Registered an LLC in NY and has an EIN. Well under $1M in revenue looking forward, so will be on cash accounting.

I have a couple of questions:

1. My plan is to put him on a sch-C as a disregarded entity. That's automatic for an SMLLC, right?

2. He has a large assemblage of tools from having been in the trade, and he's never put them into a tax return on a 2106. Also, a pickup truck that is used 100% for business. I can nail down the FMV of the truck, and for a couple of the more expensive tools. But what do I do with the 40-50 various hand tools? No receipts for any of them. Is there a 'clean' way to get them into the business and take bonus depreciation? (179 is off limits in this case, I believe).

thanks...

1. It's the default, absent an election for corporate treatment.

2. If he wants a deduction, he needs to do a wee bit of work. I would question whether used hand-tools have much of a value. Ask yourself what the price when new is. That gives you the absolute maximum and, consequently, the maximum tax savings which will inform any decision as to how long anyone wants spend on this task.

The tools put into service in "mid-year" 2017 probably wouldn't count for bonus depreciation as those tools needed to be new under pre-9/28 law.

What is the current FMV of the tools? If small enough take them as supplies, if to large depreciate them.

Thanks for the replies; yeah the small hand tools are probably past their "on paper" useful life so I'll just get the big ticket items into the schedule.

The tools put into service in "mid-year" 2017 probably wouldn't count for bonus depreciation as those tools needed to be new under pre-9/28 law.

Actually, I think the original use only needed to begin with the taxpayer…

I usually just put them in for 7 year, but don't think they have no value. Tools don't often wear out. He'll have a pretty darned good idea of what they're worth. All I've ever asked for is a list and best guesses....but don't miss that. Also for his office, desk, computer, printer, software, lamp, picture hanging there, chair, etc......