Finishing Basement

[proudarmywifewith4]

We are building a new home with a walkout basement that will be dedicated to the daycare. I know that for t/s% I can claim that sq footage at 100% but is it possible to deduct the portion of the of the purchase of finishing the basement and making it a walkout? Both of those would be required per licensing. Also we will be putting a small kitchen in, so I assume that those would also be at 100%? I just am not sure how those would work in this case?

Thanks!

[Unregistered]

Well I do know it is deducted over 39 years. I remodeled my basement for daycare and was under the impression I could deduct 100% which was right, but then I found out that was over 39 years!!
Didn't help as much as I thought it would. On my $10,000 remodel, I get less than $200 a year.

[TomCopeland]

We are building a new home with a walkout basement that will be dedicated to the daycare. I know that for t/s% I can claim that sq footage at 100% but is it possible to deduct the portion of the of the purchase of finishing the basement and making it a walkout? Both of those would be required per licensing. Also we will be putting a small kitchen in, so I assume that those would also be at 100%? I just am not sure how those would work in this case?

Thanks!

Yes, you can break out the cost of the walkout basement and depreciate it over 39 years. The same thing for the kitchen. If you put in appliances, you can deduct 100% of them in one year, using the Section 179 rule.