TheGoodLife
02-07-2013, 12:13 PM
Hi!
I just started my home DC business in August, and bought the house in April (we needed a bigger home to have an exclusive DC area, so bought a new home before I started the business). Can anyone give me a rundown of what I will need to have ready for my tax preparer? I have my time-space ratio, enrollment, hours, receipts for most purchases (have a separate post about garage sale purchases w/o receipts). I'm not really understanding how depreciation for taxes works! Are there any special records I need since I just purchased my house before the DC opened?
I've bought a new kitchen table (the last one was too small), computer (shared for personal and business purposes), exclusive-use rocker for DC (not used outside of DC time), and a few other small items. My understanding is that certain small items (pack-n-plays, cots, baby swings, advertising signs, ect) can be deducted 100% as a write-off if used exclusively for DC, and that I can apply the time-space ratio to other small items (cheap patio furniture, playset swings, printer, ect) BUT I am confused as to what to deduct and what to depreciate. Also, how do I go about depreciating things that were already part of the house (fridge, dishwasher, furnace, cookware, ect)
I am not available for the upcoming taxes webinar on Tuesday the 12th, as my SIL is in town and giving my husband and I a Valentine's date, but any resources, responses, tips are GREATLY appreciated. Thanks in advance : )
I just started my home DC business in August, and bought the house in April (we needed a bigger home to have an exclusive DC area, so bought a new home before I started the business). Can anyone give me a rundown of what I will need to have ready for my tax preparer? I have my time-space ratio, enrollment, hours, receipts for most purchases (have a separate post about garage sale purchases w/o receipts). I'm not really understanding how depreciation for taxes works! Are there any special records I need since I just purchased my house before the DC opened?
I've bought a new kitchen table (the last one was too small), computer (shared for personal and business purposes), exclusive-use rocker for DC (not used outside of DC time), and a few other small items. My understanding is that certain small items (pack-n-plays, cots, baby swings, advertising signs, ect) can be deducted 100% as a write-off if used exclusively for DC, and that I can apply the time-space ratio to other small items (cheap patio furniture, playset swings, printer, ect) BUT I am confused as to what to deduct and what to depreciate. Also, how do I go about depreciating things that were already part of the house (fridge, dishwasher, furnace, cookware, ect)
I am not available for the upcoming taxes webinar on Tuesday the 12th, as my SIL is in town and giving my husband and I a Valentine's date, but any resources, responses, tips are GREATLY appreciated. Thanks in advance : )