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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 06-20-2016, 08:04 AM
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Default Can I Deduct???

So my mixer died. After looking into buying a new motor for it, and looking at mixers, I found a great deal on a new one. A new motor for mine was $100. I found one on sale for $200, it was discounted on sale by $100. So hubby and I bit the bullet and got it. Now I am wondering if I can use my T/S % on the amount of it. I do of course use it to cook for the kids, and we use it for our cooking lessons. So I am thinking that maybe I can deduct a portion of this?
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Old 06-20-2016, 08:36 AM
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In business, anything that generally lasts less than a year can be an expense, and anything that lasts longer is treated as an asset with percentage deductions each year. You would calculate the actual value as an asset or cost as an expense based on percentage of business vs personal use.

According to this site
http://www.uphelp.org/sites/default/...ciation_CP.pdf
depreciation for a mixer is 10%/year.
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Old 06-20-2016, 09:52 AM
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Default Deduction

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Originally Posted by Thriftylady View Post
So my mixer died. After looking into buying a new motor for it, and looking at mixers, I found a great deal on a new one. A new motor for mine was $100. I found one on sale for $200, it was discounted on sale by $100. So hubby and I bit the bullet and got it. Now I am wondering if I can use my T/S % on the amount of it. I do of course use it to cook for the kids, and we use it for our cooking lessons. So I am thinking that maybe I can deduct a portion of this?
You can deduct all expenses that are "ordinary and necessary" in your business. Since you use the mixer for your business, it meets this definition. Under a new 2015 IRS rule, any item you purchase that costs less than $2,500 can be deducted in one year. So, multiply the cost by your time-space % and deduct it in one year.
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Old 06-20-2016, 09:54 AM
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Default Depreciation

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Originally Posted by Mike View Post
In business, anything that generally lasts less than a year can be an expense, and anything that lasts longer is treated as an asset with percentage deductions each year. You would calculate the actual value as an asset or cost as an expense based on percentage of business vs personal use.

According to this site
http://www.uphelp.org/sites/default/...ciation_CP.pdf
depreciation for a mixer is 10%/year.
I would not use these tables for depreciation purposes. These tables are for insurance purposes. All household furniture and appliances can be depreciated over 7 years.
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