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...