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Old 02-20-2011, 10:58 AM
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TomCopeland TomCopeland is offline
Business Author/Trainer
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,060
Default Depreciation/Expense

As a general rule you can deduct items in one year that cost less than $100 and you must depreciate items that cost more than $100.

There are exceptions to this general rule:
1) A repair or maintenance can be deducted in one year (painting the outside of your home costing $2,000)
2) Office equipment, furniture, appliances, play equipment can be deducted in one year if you bought the item in the year you are deducting it and it was used more than 50% of the time in your business. This is called the Section 179 rule and is found on Form 4562 Depreciation, Part I. Although this is a great rule, watch out. If you use it 50% or less of the time in your business over the coming 5 years (for office equipment) or 7 years (for furniture, appliances, ad play equipment) you will have to pay back some of the deductions you claimed.

I would deduct the dirt and the pool as a land improvement, depreciated over 15 years. Land improvements can use the new 50% additional depreciation allowance. For more info:

Join me for my webinar "How to Reduce Your Taxes in 2010 and 2011" sponsored by For more info:
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