Daycare.com Forum
Daycare and Taxes>Tom: Depreciation
legomom922 06:36 PM 03-13-2011
Ok, I'm stuck again...I'm confused on which items in my house are to be depreciated. I *thought* it was items over $100? But as I'm reading through your books, it says that pics on my wall are to be included?????
Why would I depreciate items that have nothing to do with my business? I dont understand that.
Secondly, if items in my home are worth less than $100, am I still suppose to depreciate them? Like my ol dishwasher..It's been in the house forever..before 2003 when my husband bought the house. It works, but I wouldnt pay anybody $2o for it..
And last, items that I have purchased since I went into business...If I understand that part correctly, those items that cost more than $100 get depreciated but if they cost under $100, they go under expenses?
Oh, and how do I depreciate my wall to wall carpet? It's old, in poor shape but has gotten worse since my business.
Why would I depreciate items that have nothing to do with my business? I dont understand that.
Secondly, if items in my home are worth less than $100, am I still suppose to depreciate them? Like my ol dishwasher..It's been in the house forever..before 2003 when my husband bought the house. It works, but I wouldnt pay anybody $2o for it..
And last, items that I have purchased since I went into business...If I understand that part correctly, those items that cost more than $100 get depreciated but if they cost under $100, they go under expenses?
Oh, and how do I depreciate my wall to wall carpet? It's old, in poor shape but has gotten worse since my business.
care-care 06:48 PM 03-13-2011
any thing that makes your house homey inviting stimulating is good. So yes pictures you can write off.
wall to wall carpet NO you bought the house with the carpet its already figured in to your house for deprication same goes with your dishwasher. even built in microwave.. Im guessing your stove if it was already there when you bought house. So none of that you need to worry about unless you had to buy new cause they needed to be replaced.
I dont think I answered everything but I tried my best.. all of course Tom has responded to on here already Because Ive learned so much from him !
wall to wall carpet NO you bought the house with the carpet its already figured in to your house for deprication same goes with your dishwasher. even built in microwave.. Im guessing your stove if it was already there when you bought house. So none of that you need to worry about unless you had to buy new cause they needed to be replaced.
I dont think I answered everything but I tried my best.. all of course Tom has responded to on here already Because Ive learned so much from him !
TomCopeland 07:14 PM 03-13-2011
Items in your home that were purchased before you went into business, but did not purchase with the intent to start your business - depreciate everything, regardless of its original cost or current value.
Items in your home that were purchased with the intent to start your business (smoke detectors, toys, etc.) - deduct under the normal rules when you business does begin.
Items that you purchase after your business begins - if it costs more than $100 - depreciate it (with some exceptions.
Yes, you can depreciate pictures on the wall because they go into making your home and learning environment for children.
Items in your home that were purchased with the intent to start your business (smoke detectors, toys, etc.) - deduct under the normal rules when you business does begin.
Items that you purchase after your business begins - if it costs more than $100 - depreciate it (with some exceptions.
Yes, you can depreciate pictures on the wall because they go into making your home and learning environment for children.