Daycare.com Forum
Daycare and Taxes>How To Deduct A Set Of Children's Books
abryann 01:04 PM 07-07-2014
I recently purchased a large set of books to use for my daycare as well as for my own children. The books are a "tools for learning" set, which is supposed to be fun for them to read as well as get them ready for school. They span from early learning (colors, shapes, etc) to early elementary education (science, nature, etc). The set cost close to $500 (after paying that, these kids BETTER be ready for school!) I'm assuming I can deduct the T/S% of the set; however, I'm not sure if it's a depreciable expense, or if it can be deducted in one year. Does anyone here know?
AmyKidsCo 01:09 PM 07-07-2014
Since it's per $100 it needs to be depreciated. I don't know if you only depreciate the T/S part or not - I'm sure Tom Copeland will pop in and let you know when he sees the question. 
TomCopeland 03:11 PM 07-07-2014
Originally Posted by abryann:
I recently purchased a large set of books to use for my daycare as well as for my own children. The books are a "tools for learning" set, which is supposed to be fun for them to read as well as get them ready for school. They span from early learning (colors, shapes, etc) to early elementary education (science, nature, etc). The set cost close to $500 (after paying that, these kids BETTER be ready for school!) I'm assuming I can deduct the T/S% of the set; however, I'm not sure if it's a depreciable expense, or if it can be deducted in one year. Does anyone here know?
I would deduct the time-space % of this cost in one year, because there are so many books as part of the set, and books are never depreciated. By the way, the new rule for 2013 says that any expense less than $200 (no longer $100) can be deducted in one year and not depreciated.I recently purchased a large set of books to use for my daycare as well as for my own children. The books are a "tools for learning" set, which is supposed to be fun for them to read as well as get them ready for school. They span from early learning (colors, shapes, etc) to early elementary education (science, nature, etc). The set cost close to $500 (after paying that, these kids BETTER be ready for school!) I'm assuming I can deduct the T/S% of the set; however, I'm not sure if it's a depreciable expense, or if it can be deducted in one year. Does anyone here know?
The new rule also says that if you have a financial statement in your files as of the beginning of each tax year, you can deduct any items costing less than $500 in one year. See my article on this:http://www.tomcopelandblog.com/2013/...and-money.html
sammie 03:54 PM 07-07-2014
Originally Posted by TomCopeland:
I would deduct the time-space % of this cost in one year, because there are so many books as part of the set, and books are never depreciated. By the way, the new rule for 2013 says that any expense less than $200 (no longer $100) can be deducted in one year and not depreciated.
The new rule also says that if you have a financial statement in your files as of the beginning of each tax year, you can deduct any items costing less than $500 in one year. See my article on this:http://www.tomcopelandblog.com/2013/...and-money.html
I would deduct the time-space % of this cost in one year, because there are so many books as part of the set, and books are never depreciated. By the way, the new rule for 2013 says that any expense less than $200 (no longer $100) can be deducted in one year and not depreciated.
The new rule also says that if you have a financial statement in your files as of the beginning of each tax year, you can deduct any items costing less than $500 in one year. See my article on this:http://www.tomcopelandblog.com/2013/...and-money.html
Would this new rule also apply to home repairs/maintenance? We had to have a plumber out last week and the total cost was approx $1000. When I apply my T/S% it will be under $500. Would I be able to deduct all this at once? Thanks!
abryann 06:20 PM 07-07-2014
Thank you very much!