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-   -   Toy Depreciation? (https://www.daycare.com/forum/showthread.php?t=87079)

midaycare 08-25-2017 11:13 AM

Toy Depreciation?
 
Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.

TomCopeland 08-25-2017 02:34 PM

Toys
 

Originally Posted by midaycare:
Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.

New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.

Mom2Two 08-25-2017 02:58 PM

Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?

MarinaVanessa 08-26-2017 11:22 AM

Originally Posted by TomCopeland:
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.

WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine :lol::lol::lol:

TomCopeland 08-27-2017 12:39 PM

$2,500 rule
 

Originally Posted by Mom2Two:
Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?

This rule is for all businesses.

TomCopeland 08-27-2017 12:40 PM

$2,500 rule
 

Originally Posted by MarinaVanessa:
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine :lol::lol::lol:

Yes, completely deductible in one year. Same with the $400 machine. Go crazy.

midaycare 08-28-2017 10:31 AM

Originally Posted by TomCopeland:
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.

That is amazing!!!!! Thanks Tom!

daycarediva 08-29-2017 07:34 PM

Originally Posted by MarinaVanessa:
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine :lol::lol::lol:

YES! I deducted mine last year. AND all of the cartridges. :ouch:


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