Tools used in a business are deductible in one of two ways.  
1. Tools that will not last for more than one year under normal usage and are deductible in the year of purchase.  
2. Tools that will last for more than one year under normal usage must be capitalized and depreciated under normal depreciation guidelines. These depreciable tools could be expensed if a proper expense election is made under §179.
For employees, the deduction for tools is taken of Form 2106, Form 1040, Schedule A subject to 2% AGI.
For sole proprietors, the tools are deducted on Schedule C, Form 1040.