Tools of trade exemptions

[peculiar]

My wife uses one of our cars to do her job which is to update products at a number of retail stores. She travels to several stores throughout the day to do her job. Would this be covered under tools of the trade? If so...is there a limit to how much the car can be worth?

Thanks

[oregonpilot]

My wife uses one of our cars to do her job which is to update products at a number of retail stores. She travels to several stores throughout the day to do her job. Would this be covered under tools of the trade? If so...is there a limit to how much the car can be worth?

Thanks

Hi peculiar...
looking at the exemptions for AZ-- tools of trade is 2500 and vehicle exemption is 5k. That 5k would be the equity in the vehicle. ex...vehicle worth 10k ,owe 5k, equity would be 5k.

Here's what i found---
Tools of trade exemptions Arizona:

These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it as such. Commuting to work doesn't count, but if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.

Arms, uniforms, & accoutrements of profession or office required by law
Ariz. Rev. Stat. § 33-1130 (3)

Farm machinery, utensils, seed, instruments of husbandry, feed, grain, & animals to $2,500 total
Ariz. Rev. Stat. § 33-1130 (2)

Library & teaching aids of teacher
Ariz. Rev. Stat. § 33-1127

Tools, equipment, instruments, & books to $2,500
Ariz. Rev. Stat. § 33-1130 (1)

[StartinOver]

Would that mean, that if the car was worth more than the vehicle exemption would cover, and the car was used in the transaction of business, that OP could apply the 2500 and the 5000 and cover a vehicle of 7000 in equity?

Errr... edit - 7500. (OK, so I'm a little math challenged which should not be such a surprise then, that's in debt over my eyeballs! LOL)

[oregonpilot]

I was researching and i didn't see anywhere that it could be combined. (i could be missing it though)

AZ 33-1130. Tools and equipment used in a commercial activity, trade, business or profession

The following tools and equipment of a debtor used in a commercial activity, trade, business or profession shall be exempt from process:

1. The tools, equipment, instruments and books of a debtor or the spouse of a debtor primarily used in, and necessary to carry on, the commercial activity, trade, business or profession of the debtor or the debtor's spouse, not in excess of an aggregate fair market value of two thousand five hundred dollars. For the purpose of this paragraph, "tools" do not include a motor vehicle primarily used by a debtor for personal, family or household purposes such as transportation to and from the debtor's place of employment.

[oregonpilot]

Errr... edit - 7500. (OK, so I'm a little math challenged which should not be such a surprise then, that's in debt over my eyeballs! LOL)

ALSO...the fact that the sun should be coming up soon on your side of the country. LOL

[daylate]

I would think that in this situation, from what has been written above, that the car could be considered a tool of trade in that the op's wife has to go to numerous sites during the day. From a tax perspective, her first trip to a store and the last back home are her commute-the rest are business deductible expenses. Without a car she can't do the job.
Also as to whether you can combine,oregonpilot said they didn't see where you could, but didn't say they found something where you couldn't. I don't see from a common sense point of view why you can't combine them.
Hopefully Des will chime in.

[peculiar]

Thanks guys! Des...do you have any experience with this?

Specifically...I am asking if the the standard auto deduction and the $2500.00 exemption for tools of the trade can be combined to total $7500.00. Also..I'm trying to determine if the tools cap applies to an automobile...and finally...if tools of the trade can be combined for married couples..thus having a $5000.00 cap for a married couple.

Thanks