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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 08-25-2017, 11:13 AM
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midaycare midaycare is offline
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Default Toy Depreciation?

Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.
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Old 08-25-2017, 02:34 PM
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Default Toys

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Originally Posted by midaycare View Post
Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.
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Old 08-25-2017, 02:58 PM
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Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?
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Old 08-26-2017, 11:22 AM
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Originally Posted by TomCopeland View Post
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine
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Old 08-27-2017, 12:39 PM
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Default $2,500 rule

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Originally Posted by Mom2Two View Post
Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?
This rule is for all businesses.
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Old 08-27-2017, 12:40 PM
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Default $2,500 rule

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Originally Posted by MarinaVanessa View Post
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine
Yes, completely deductible in one year. Same with the $400 machine. Go crazy.
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Old 08-28-2017, 10:31 AM
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Originally Posted by TomCopeland View Post
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.
That is amazing!!!!! Thanks Tom!
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Old 08-29-2017, 07:34 PM
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Quote:
Originally Posted by MarinaVanessa View Post
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine
YES! I deducted mine last year. AND all of the cartridges.
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