Daycare.com 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 04-02-2013, 12:19 PM
AnythingsPossible AnythingsPossible is offline
Daycare Member
 
Join Date: Jan 2010
Posts: 793
Default Depreciation

What is the proper form to use for depreciation of new windows and new furniture? I imagine it is a different time frame for these purchases. Does the 50% rule apply to both?
Reply With Quote
  #2  
Old 04-02-2013, 06:33 PM
TomCopeland's Avatar
TomCopeland TomCopeland is online now
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 2,790
Default Depreciation

Quote:
Originally Posted by AnythingsPossible View Post
What is the proper form to use for depreciation of new windows and new furniture? I imagine it is a different time frame for these purchases. Does the 50% rule apply to both?
I would treat new windows as a home improvement - depreciate over 39 years, not eligible for the 50% bonus rule.
I would treat new furniture as personal property - depreciate over 7 years, is eligible for the 50% bonus rule.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #3  
Old 04-06-2013, 05:32 PM
AnythingsPossible AnythingsPossible is offline
Daycare Member
 
Join Date: Jan 2010
Posts: 793
Default

Why would something that won't technically last 39 years be depreciated over that amount of time? Seems like a long time to me. Based off of that, I will only be deducting approximately 30 dollars a year based on time/space and the number of years for an improvement that cost nearly 6,000. My math may not be quite right, but it still seems quite low.
Reply With Quote
  #4  
Old 04-07-2013, 04:45 AM
Unregistered
Guest
 
Posts: n/a
Default

My new furnace which cost over $5000 last year gave me an $8 depreciation deduction for this year. Yep. $8.
Reply With Quote
  #5  
Old 04-07-2013, 02:36 PM
TomCopeland's Avatar
TomCopeland TomCopeland is online now
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 2,790
Default home improvements

Quote:
Originally Posted by AnythingsPossible View Post
Why would something that won't technically last 39 years be depreciated over that amount of time? Seems like a long time to me. Based off of that, I will only be deducting approximately 30 dollars a year based on time/space and the number of years for an improvement that cost nearly 6,000. My math may not be quite right, but it still seems quite low.
It's true that home improvements give you very little deduction each year. If they wear out before the end of 39 years you can claim all remaining depreciation in that year.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may 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
Depreciation & T/S% Lyss Daycare and Taxes 1 02-25-2013 11:18 AM
Claiming Depreciation? Malmom Daycare and Taxes 1 02-11-2013 05:45 PM
Depreciation when you've gone out of business. awestbrook713 Daycare and Taxes 1 02-06-2013 10:34 AM
Home Improvement Depreciation: Which Form? kitkat Daycare and Taxes 2 01-28-2011 05:20 AM
Depreciation? newtodaycare22 Daycare and Taxes 2 01-07-2011 10:35 AM


All times are GMT -7. The time now is 04:50 AM.



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