Yes, a fence is a land improvement and a land improvement is eligible for the 100% bonus depreciation rule. Since your fence is only for the daycare, you can deduct 100% of the cost of the fence on Form 4562, line 14.
Join me tomorrow (Feb 9) for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes". For details:
http://events.r20.constantcontact.co...&llr=yatrx4cab