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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 01-08-2011, 02:47 AM
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llove530 llove530 is offline
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Default Help - Another Depreciation Question

We had to purchase a new heating/ac unit for our house. I use 100% of my home for my daycare. The unit was very costly. How do I write this off on my business taxes. I also included it on personal for the energy credit. Help!
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Old 01-08-2011, 04:31 AM
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welcome! You would use the time/space %. I am not sure how the tax credit affects it though.
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Old 01-08-2011, 05:16 AM
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I would put it under depreciation though and not an expense right?
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Old 01-08-2011, 05:50 AM
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I believe yes.
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Old 01-09-2011, 04:16 AM
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Do I have to figure out the time / space % myself and then put in that figure?
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Old 01-10-2011, 07:54 AM
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Default Energy Tax Credit

You can deduct the time-space percentage of the cost of a new heating/ac system. Since this is a home improvement, you must depreciate it over 39 years.

Assuming your heating/ac system was energy efficient, you may also be entitled to claim a federal energy tax credit. See my recent blog post on this: http://tinyurl.com/4rn3hmw

The blog post says that you can't claim the maximum energy tax credit if your time-space percentage was over 20%.
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Old 01-10-2011, 02:44 PM
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llove530 llove530 is offline
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Default For Tom again!!

I am claiming the Energy Credit on my personal taxes and not business.

Wow 39 yrs. that is a long time !!
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Old 01-11-2011, 10:24 AM
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Default Energy Tax Credit

Yes, 39 years is a long time! Claim the energy credit on your personal tax return, not your business tax forms.
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