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Daycare and Taxes>Question for Tom...Help pls
frugalmama4 08:19 PM 02-10-2013
Good Morning Tom, I hope you had a great weekend!

I do apologize in advance for the long question(s)...I'm stuck and can't go further.

Tax Questions "TurboTax"

History-I used TurboTax last yer (2011) to play around with filling my own business tax. I input all personal and business information, however I did not file through TurboTax " had a professional do them for me". This year I feel confident " with the help of your books and blog" that I can do them myself...note: I have always done our family taxes without issues using TT.

Problem-I can't access the information I would have enter into TT last year...in order to verify it's the same information that was actually filed. I do have my completed return with all the business forms/information...just unsure about the depreciation chart provided from the tax professional and what TT is pulling over from last year's return "what I would have inputted while playing with it? TT keeps the previous information and automatically pulls it for the next tax year...rather you file with them or not.

Questions-

1. TT ask if I have any carry over expanses from (form 8829 line 42 & 43) Yes, I do line 42 is (14) line 43 is (1). or these numbers codes for an actually $ amount...or is it the $ amount I'm carrying over? This gave me a carry over amount of $1,519.00 for 2013 an a deduction of $6,259.00 for home office 2012.

2. Now TT had these sections per-filled as follows, line 42 (381.) line 43 (45.) giving me a carry over amount of $1,108.00 for 2013 and a deduction of $6.295 for home office 2012.

3. TT ask what is the percentage of time business is conducted in the home office...this would be 100% right? (for a child care provider)

Depreciation question-This is where my brain shuts off

TT has pulled the depreciation information from what I inputted for 2011 " while playing around with it". I'm assuming the information is what should be claimed for 2013...not where I left off for 2011. Note: I have chatted with an online rep who says TT will automatically update information from tax year to tax year.

My Example: Last year I depreciate the following item

Washer/dryer $2061 purchase new in 2011 put in service in 2011 applied the "bonus deprecation rule" using my T/S% (33.250)
$2061 X 33.250%=685.2825 "round up" 686
Deprecation applied $686.00 method "MACRS" 7.0

Now on the deprecation schedule provided by the tax professional it has all the above information in my example as well as...
ADS Deprecation for 2011 (98)...What is this amount for?

While trying to update it in TT, it shows an $0 deprecation for this year...I'm thinking because all was used in the first year under the bonus rule...am I correct?

Thanks so much Tom,,,and I can't wait til Tuesday for the webinar and I'll get to see you in person next month! Yeah me, you'll be in my neck of the woods.
Reply
TomCopeland 07:22 PM 02-11-2013
Originally Posted by frugalmama4:
Good Morning Tom, I hope you had a great weekend!

I do apologize in advance for the long question(s)...I'm stuck and can't go further.

Tax Questions "TurboTax"

History-I used TurboTax last yer (2011) to play around with filling my own business tax. I input all personal and business information, however I did not file through TurboTax " had a professional do them for me". This year I feel confident " with the help of your books and blog" that I can do them myself...note: I have always done our family taxes without issues using TT.

Problem-I can't access the information I would have enter into TT last year...in order to verify it's the same information that was actually filed. I do have my completed return with all the business forms/information...just unsure about the depreciation chart provided from the tax professional and what TT is pulling over from last year's return "what I would have inputted while playing with it? TT keeps the previous information and automatically pulls it for the next tax year...rather you file with them or not.

Questions-

1. TT ask if I have any carry over expanses from (form 8829 line 42 & 43) Yes, I do line 42 is (14) line 43 is (1). or these numbers codes for an actually $ amount...or is it the $ amount I'm carrying over? This gave me a carry over amount of $1,519.00 for 2013 an a deduction of $6,259.00 for home office 2012.

2. Now TT had these sections per-filled as follows, line 42 (381.) line 43 (45.) giving me a carry over amount of $1,108.00 for 2013 and a deduction of $6.295 for home office 2012.

3. TT ask what is the percentage of time business is conducted in the home office...this would be 100% right? (for a child care provider)

Depreciation question-This is where my brain shuts off

TT has pulled the depreciation information from what I inputted for 2011 " while playing around with it". I'm assuming the information is what should be claimed for 2013...not where I left off for 2011. Note: I have chatted with an online rep who says TT will automatically update information from tax year to tax year.

My Example: Last year I depreciate the following item

Washer/dryer $2061 purchase new in 2011 put in service in 2011 applied the "bonus deprecation rule" using my T/S% (33.250)
$2061 X 33.250%=685.2825 "round up" 686
Deprecation applied $686.00 method "MACRS" 7.0

Now on the deprecation schedule provided by the tax professional it has all the above information in my example as well as...
ADS Deprecation for 2011 (98)...What is this amount for?

While trying to update it in TT, it shows an $0 deprecation for this year...I'm thinking because all was used in the first year under the bonus rule...am I correct?

Thanks so much Tom,,,and I can't wait til Tuesday for the webinar and I'll get to see you in person next month! Yeah me, you'll be in my neck of the woods.
1) Put on line 24 on your 2012 Form 8829 your rollover expenses from your 2011 Form 8829 line 42. I don't know if this is $14 or not. Check your 2011 tax return. Line 43 is for any carryover depreciation. Check your 2001 tax return to see what is on this line and put it on line 27 on your 2012 8829.

2) Check your 2011 Form 8829 to see what numbers should show on your 2012 form.

3) No, not 100%. It's your time percent.

In 2011 there was a 100% bonus depreciation rule. Therefore, there wouldn't be anymore depreciation to claim in 2012.

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
Reply
frugalmama4 08:39 PM 02-11-2013
Thanks for your help

I asked before what to claim under "Business Conducted in Home Office" in TurboTax...below is how the question reads.

Enter the percentage of time provider spends conducting business in the home office. See Examples: Here are some examples of how to figure what percentage to enter:

Example of when to enter 100%

You work as a freelance editor for numerous online publications. In addition to the actual editing, you use your home office to perform research, call in to meetings and otherwise communicate with the publications, look for other editing jobs, and perform administrative work such as keeping track of your income and expenses. Any time spent out of the office is to buy office supplies and to attend conferences and seminars directly related to your work. You enter 100 for the percentage of business income earned from your home office. This is what I'm confused on??? The why it reads to me is " the percentage of time I earn income from working in my home office" and that would be 100% since I don't earn income away from the home during childcare...right?

Note: The number you enter will impact your allowable home office deduction.

My Question: Would this be 100% for me since I earn all of my income based on the work I do at home "home office"?


Thanks Tom...I have my pin and paper ready for tonight's webinar.
Reply
TomCopeland 08:41 AM 02-12-2013
Originally Posted by frugalmama4:
Thanks for your help

I asked before what to claim under "Business Conducted in Home Office" in TurboTax...below is how the question reads.

Enter the percentage of time provider spends conducting business in the home office. See Examples: Here are some examples of how to figure what percentage to enter:

Example of when to enter 100%

You work as a freelance editor for numerous online publications. In addition to the actual editing, you use your home office to perform research, call in to meetings and otherwise communicate with the publications, look for other editing jobs, and perform administrative work such as keeping track of your income and expenses. Any time spent out of the office is to buy office supplies and to attend conferences and seminars directly related to your work. You enter 100 for the percentage of business income earned from your home office. This is what I'm confused on??? The why it reads to me is " the percentage of time I earn income from working in my home office" and that would be 100% since I don't earn income away from the home during childcare...right?

Note: The number you enter will impact your allowable home office deduction.

My Question: Would this be 100% for me since I earn all of my income based on the work I do at home "home office"?


Thanks Tom...I have my pin and paper ready for tonight's webinar.
This is a different question than you earlier stated. Here are you are being asked if 100% of your income is earned from your home-based business. The answer is yes, 100%.
Reply
frugalmama4 09:41 AM 02-12-2013
Yea, when I went back in to TT last night I notice I worded my question to you...incorrectly.

So to confirm in this section of TT I should enter a 100%...right?

Thanks Tom
Reply
TomCopeland 10:29 AM 02-12-2013
Originally Posted by frugalmama4:
Yea, when I went back in to TT last night I notice I worded my question to you...incorrectly.

So to confirm in this section of TT I should enter a 100%...right?

Thanks Tom
Yes, 100% is the answer.
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