Daycare.com Forum Daycare Forum

Go Back   Daycare.com Forum > Daycare and Taxes

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.

Reply
 
Thread Tools Display Modes
  #1  
Old 11-10-2013, 08:45 AM
tn0087's Avatar
tn0087 tn0087 is offline
Daycare.com Member
 
Join Date: Feb 2011
Posts: 29
Default State Required Pool Fence

Hi Everyone,

We have an above-ground pool in our fenced backyard. Having a fenced backyard is sufficient for NYS law to own a pool; however, because the pool sides are not 48" all the way around, we are required to put a fence inside the yard surrounding the pool to be able to use the backyard as daycare space.

We have done this and I was wondering how it should be counted on this year's taxes. Since the yard is already fenced, adding the fence around the pool is only to satisfy daycare requirements and not something we would otherwise do in our backyard. As a result, I would think this should be a 100% write-off instead of using T/S%. Since this is a new fence, do I need to depreciate it? Or can it be written off in one year as it is tied to an existing deck that surrounds part of the pool already and connects to the house? The cost of putting in the fence is just under $2000.

Thanks,
Tim
Reply With Quote
  #2  
Old 11-11-2013, 07:22 AM
sharlan's Avatar
sharlan sharlan is offline
Advanced Daycare.com Member
 
Join Date: May 2011
Location: Chino, California
Posts: 6,040
Default

I would run this by Tom Copeland.

IMHO, you would depreciate it because of the cost.
Reply With Quote
  #3  
Old 11-11-2013, 11:10 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default Fence

Quote:
Originally Posted by tn0087 View Post
Hi Everyone,

We have an above-ground pool in our fenced backyard. Having a fenced backyard is sufficient for NYS law to own a pool; however, because the pool sides are not 48" all the way around, we are required to put a fence inside the yard surrounding the pool to be able to use the backyard as daycare space.

We have done this and I was wondering how it should be counted on this year's taxes. Since the yard is already fenced, adding the fence around the pool is only to satisfy daycare requirements and not something we would otherwise do in our backyard. As a result, I would think this should be a 100% write-off instead of using T/S%. Since this is a new fence, do I need to depreciate it? Or can it be written off in one year as it is tied to an existing deck that surrounds part of the pool already and connects to the house? The cost of putting in the fence is just under $2000.

Thanks,
Tim
Because the fence is a specific requirement of your licensing rules and because you get no personal benefit from it, I would claim 100% of the cost. However, a fence is considered a land improvement, therefore you must depreciate it over 15 years. You can use the 50% bonus rule in 2013 and deduct 50% of the cost in 2013 (using Form 4562, line 14). Depreciate the remaining $1,000 over 15 years.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Tags
depreciate, pool fence

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Licensed DayCare vs. Private DayCare marylmr Daycare Center and Family Home Forum 60 02-24-2020 12:20 PM
More State Issues with Fence Requirements gbcc Daycare Center and Family Home Forum 46 08-28-2018 01:35 PM
Family Daycare with Swimming Pool Interested Parents and Guardians Forum 52 08-03-2017 10:53 AM
This Is My State DCBlessings27 Daycare Center and Family Home Forum 21 10-23-2012 09:37 AM
Is Backyard Fencing Required in Your State??? Unregistered Daycare Center and Family Home Forum 7 05-15-2010 07:59 PM


All times are GMT -7. The time now is 07:30 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming