Here are the relevant income limits for whether or not you can make a deductible IRA condtribution:
https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-retirement-plan-at-workIf you don't have any employees you can set up a solo 401k (fidelity or vanguard would be good options). Make sure you open by December 31st, 2016, and set the effective date as January 1st 2016 -- that way you'll be able to contribute based on all of this years income. You can make the actual contribution any time up to the tax filing deadline. Here's a calculator to give you an idea of what you'll be able to contribute:
http://www.bankrate.com/calculators/retirement/self-employed-401-k-calculator.aspxIf you do sign up for a self employed retirement plan (like the solo 401k, or a SEP IRA or Simple IRA would be be other options with generally lower limits), then you WILL be covered by a retirement plan at work, in which case your regular IRA deductibility limits become
https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-workYou can claim a deduction for your office/shop only if it's your principal place of business and it is used exclusively for business, so it sounds like your office would not qualify, but maybe your shop would? If the space qualifies you can choose to write off a portion of your mortgage, insurance, utilities, etc based on the proportion of the square footage used for business to the whole house square footage. Alternatively, you can claim up to 300 square feet using the simplified method ($5/sq ft I think). In addition to being easier to calculate, the simplified method does not require depreciation recapture when you sell your home, which the regular method does. This should get you started:
https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deductionMaterials I would think you can certainly write off as business expenses. I think Taxact tries to walk me through a COGS (Cost of Goods Sold) section, but it doesn't really apply to me since I'm a web developer.
Tools I think would be capital expenditures which are normally depreciated over time, but I think there are some options for accelerated depreciation where you can write the whole thing off in the first year. I think this is a section 179:
https://www.irs.gov/publications/p946/ch02.htmlThe other (potential) biggie would be business use of your car, so keep track of any miles driven for business purposes (including bank visits, supply runs, etc).
The long and short of it is, if there's something that costs you money that is used for business purposes, there is probably a way to deduct it, but you have to be careful to follow the rules and make sure there are clean and clear lines between personal benefit and business use. Since business owners have so much control over their expenses the IRS just wants to make sure it really is a business expense and not a personal expense masquerading as a business expense.
Hopefully that gets you started.