What Percentage?

[krosey5]

I purchased a rug for my daycare room. I spent $285 on it. I have 3 young children of my own who use the daycare room before/during/after hours. I bought the rug for the purpose of the daycare, but since the girls use the room as well, I can only claim time-space % on the rug, right? Also, the $285 needs to be depreciated?

One more, if I buy a swing seat, swing hanger & glider swing....each item under $100, do I have to depreciate them or can I claim all in this year?

Sorry so many questions, I just want to make sure I understand 100%.

[TomCopeland]

Yes, you can only deduct the time-space % of the cost of the rug. If you use the rug more than 50% in your business, you can use the Section 179 rule and deduct the business portion in one one. See:http://www.tomcopelandblog.com/2012/...-179-rule.html
Otherwise, you must depreciate it over 7 years. There is a 2012 rule that allows you to claim 50% of this depreciation in 2012 and depreciate the other half over 7 years.
See: http://www.tomcopelandblog.com/2012/...-its-2012.html

Since it sounds like the swing set is part of one item, you should add the expenses together and depreciate them over 7 years.