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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 01-29-2018, 11:17 AM
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TSDaycare TSDaycare is offline
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Default Inputting Numbers for Bathroom Update

We purchased all things to remodel bathroom.....new vanity, new flooring, drywall had to be redone because of leak, new paint, trim, lights, everything. Should I add all receipts together then input total number as depreciation expense? Then we paid a contractor to come in and do it, how do I input this?

Also did some updating kitchen the same way? Please advise on how to put in MM. As it asks for value when placed in service, method, and convention
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Old 01-29-2018, 11:58 AM
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Default Remodeling

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Originally Posted by TSDaycare View Post
We purchased all things to remodel bathroom.....new vanity, new flooring, drywall had to be redone because of leak, new paint, trim, lights, everything. Should I add all receipts together then input total number as depreciation expense? Then we paid a contractor to come in and do it, how do I input this?

Also did some updating kitchen the same way? Please advise on how to put in MM. As it asks for value when placed in service, method, and convention
The answer depends on when you did the remodeling. If you did the bathroom after September 27, 2017, you can treat the entire cost as a repair and deduct your time-space % of the cost in one year. If you did the work before that date you must add all the costs together and treat it as a home improvement that you must depreciate over 39 years. But, then you can use the 50% bonus depreciation rule and claim half of the depreciation in 2017.

If the cost of the kitchen, regardless of when you did the work, was less than $2,500 then it's a repair and you can deduct the business portion in one year. If it's more than that, treat it as a home improvement.

For home improvements, don't worry about entering the "method" or "convention" into Minute Menu. These issues can be dealt with by your tax preparer. If you are doing your own taxes, enter "straight line" for method, and "mid month" for convention.
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Old 01-29-2018, 12:01 PM
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Default

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Originally Posted by TomCopeland View Post
The answer depends on when you did the remodeling. If you did the bathroom after September 27, 2017, you can treat the entire cost as a repair and deduct your time-space % of the cost in one year. If you did the work before that date you must add all the costs together and treat it as a home improvement that you must depreciate over 39 years. But, then you can use the 50% bonus depreciation rule and claim half of the depreciation in 2017.

If the cost of the kitchen, regardless of when you did the work, was less than $2,500 then it's a repair and you can deduct the business portion in one year. If it's more than that, treat it as a home improvement.

For home improvements, don't worry about entering the "method" or "convention" into Minute Menu. These issues can be dealt with by your tax preparer. If you are doing your own taxes, enter "straight line" for method, and "mid month" for convention.
Great! Yes it was done in Nov through December, but I'm just remembering we didn't pay the contractor until January.

I also forgot the new kitchen appliances we bought in Nov, how about those?
Thanks!
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Old 01-30-2018, 05:20 AM
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Great! Yes it was done in Nov through December, but I'm just remembering we didn't pay the contractor until January.

I also forgot the new kitchen appliances we bought in Nov, how about those?
Thanks!
Should I input each appliance in separately? Together they total $2581.
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Old 01-30-2018, 08:14 AM
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Default appliances

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Should I input each appliance in separately? Together they total $2581.
Treat each appliance separately and deduct the business portion in one year. If you signed a contract with the contractor after September 27, 2017, deduct it as a 2017 expense.
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