GG~DAYCARE 07:10 AM 05-26-2011
I purchased a sectional sofa during 2010 it is in my main day care room but it is also my family room. I know to use the % ratio but is it better to depreciate or use the whole total for 2010? The cost was $2,000.
Thanks!!
TomCopeland 11:56 AM 05-26-2011
Unless you use the sofa more than 50% for your business you must depreciate it. If it is more than 50% business use you can use the Section 179 rule and claim it all in 2010. If the item was new you can use the 50% additional depreciation rule and claim half of the normal depreciation in 2010 and depreciate the other half over 7 years.