Daycare.com Forum
Daycare and Taxes>Depreciation categories help
kitkat 07:15 AM 01-23-2014
I use Tax Act and I just want to double check which categories I should use for depreciation on form 4562. All items are used less than 50% business use. Thanks for your help!
Windows and another home improvement: Nonresidential Real Property
Laptop and iPad: Computer
TV and Dehumidifier: The choices are as follows-
Office Furniture & Fixtures
Other Asset
Non-Listed Property
Listed Property
Windows and another home improvement: Nonresidential Real Property
Laptop and iPad: Computer
TV and Dehumidifier: The choices are as follows-
Office Furniture & Fixtures
Other Asset
Non-Listed Property
Listed Property
TomCopeland 07:54 AM 01-23-2014
Originally Posted by kitkat:
I use Tax Act and I just want to double check which categories I should use for depreciation on form 4562. All items are used less than 50% business use. Thanks for your help!
Windows and another home improvement: Nonresidential Real Property
Laptop and iPad: Computer
TV and Dehumidifier: The choices are as follows-
Office Furniture & Fixtures
Other Asset
Non-Listed Property
Listed Property
Everything is correct. TV and dehumidifier should be listed as Office Furniture & FixturesI use Tax Act and I just want to double check which categories I should use for depreciation on form 4562. All items are used less than 50% business use. Thanks for your help!
Windows and another home improvement: Nonresidential Real Property
Laptop and iPad: Computer
TV and Dehumidifier: The choices are as follows-
Office Furniture & Fixtures
Other Asset
Non-Listed Property
Listed Property
kitkat 08:30 AM 01-23-2014
If Tax Act doesn't ask for my business percentage, then I need to calculate the percentage of business use and enter that amount instead of the whole amount, correct?
TomCopeland 11:57 AM 01-23-2014
Originally Posted by kitkat:
If Tax Act doesn't ask for my business percentage, then I need to calculate the percentage of business use and enter that amount instead of the whole amount, correct?
Yes! This is a big problem with any tax software. It doesn't account for the fact that child care providers are not using business items 100% of the time in their business. So, for every shared expense you have, you must separately apply your time-space % before entering it into the software.If Tax Act doesn't ask for my business percentage, then I need to calculate the percentage of business use and enter that amount instead of the whole amount, correct?