Swimming Pool Deduction?

[SherriW]

I started my daycare in August 2017. I have almost finished completing my taxes for the year. Net profit of around $550 with all my deductions.

I have an 11 year old inground swimming pool in excellent condition. Installed new vinyl liner in 2016 also. My daycare kids will use it in the summer.

I dont want to show a loss for taxes this year. Will I be able to claim the pool on my 2018 taxes for the first time or do i have to start in the year my business began? If i can claim it in 2018, how can i figure its value/depreciation?

Thanks!

[Country Kids]

You can only claim it if daycare children are allowed to use it. Not sure on the whole depreciation area though.

Is that something your state regs allow? I believe for where I live we have to have pools certified as a public pool, so that might be something you might want to look into. If so, do you have parent permission forms showing they have ok'd children to use the pool. All cleaners, chlorine, etc would probably be a write off also.

If you aren't allowed to use it, but have to have a fence around it and locked, those materials I believe would be a write off.

[SherriW]

I have only three to four kids at any time and my state doesn't require a license for under five kids that are unrelated so I am not regulated by the department of human services. I do not have any written permission from the parents. However, it's at the parents request that they swim. Should I get permission forms and how much would a form protect me if there were an incident?

[Play Care]

Originally Posted by SherriW

I have only three to four kids at any time and my state doesn't require a license for under five kids that are unrelated so I am not regulated by the department of human services. I do not have any written permission from the parents. However, it's at the parents request that they swim. Should I get permission forms and how much would a form protect me if there were an incident?

Yes, absolutely!!! Heaven forbid anything happens, those parents will say they never gave permission. Mark my word.
I would also have written protocol for pool use (perhaps coast guard approved vests for non-swimmers, eyes on/arms length supervision on your part, health policy for using the pool, etc.) As well as making sure gates and locks are in working order in addition to a working pool alarm for times pool is off limits.

[SherriW]

I do have strict protocol concerning the pool area and its use. Just not written. I will do the parent permission forms this year before swim season for sure. But just how much will parent permission to use the pool protect me if there were an incident??

[Blackcat31]

Originally Posted by SherriW

I do have strict protocol concerning the pool area and its use. Just not written. I will do the parent permission forms this year before swim season for sure. But just how much will parent permission to use the pool protect me if there were an incident??

Parent permission won't protect you if something happens. A signed waiver won't protect you either.

You can be 100% compliant with any and all state rules and if anything happens on your watch it is 100% your responsibility. Even if it's a school aged child that you've told a hundred time...ANYTHING on your watch is YOUR responsibility. Always.

http://tomcopelandblog.com/will-liab...rs-protect-you

[TomCopeland]

Originally Posted by Play Care

Yes, absolutely!!! Heaven forbid anything happens, those parents will say they never gave permission. Mark my word.
I would also have written protocol for pool use (perhaps coast guard approved vests for non-swimmers, eyes on/arms length supervision on your part, health policy for using the pool, etc.) As well as making sure gates and locks are in working order in addition to a working pool alarm for times pool is off limits.

I agree with Play Care!

[TomCopeland]

Originally Posted by SherriW

I do have strict protocol concerning the pool area and its use. Just not written. I will do the parent permission forms this year before swim season for sure. But just how much will parent permission to use the pool protect me if there were an incident??

It will protect you a little bit. You are always responsible for what happens to a child in your care. You want a lot of professional business liability insurance to protect you in this situation.

[TomCopeland]

Originally Posted by SherriW

I started my daycare in August 2017. I have almost finished completing my taxes for the year. Net profit of around $550 with all my deductions.

I have an 11 year old inground swimming pool in excellent condition. Installed new vinyl liner in 2016 also. My daycare kids will use it in the summer.

I dont want to show a loss for taxes this year. Will I be able to claim the pool on my 2018 taxes for the first time or do i have to start in the year my business began? If i can claim it in 2018, how can i figure its value/depreciation?

Thanks!

Depreciation begins in the year you started using the pool for your business. So, you can not claim the pool depreciation for 2017 and start depreciating it in 2018 as year 2. You would lose the first year depreciation deduction. Depreciate it based on its value in 2017. Hard to estimate what it's worth. Ask a pool installer. Depreciate it over 15 years as a land improvement.

[SherriW]

I agree with everyone! I will get it all in writing for what it's worth. Can't hurt, might help a little in some situations. I will just remain strict with my policies and ever vigilant as always. Pool safety is always a big concern. Even when my childcare kids aren't here.

Thanks Tom for the tax advice also!

[Play Care]

Originally Posted by SherriW

I do have strict protocol concerning the pool area and its use. Just not written. I will do the parent permission forms this year before swim season for sure. But just how much will parent permission to use the pool protect me if there were an incident??

The one thing I could see is if a child was hurt and you were reported, the parent claiming they had no idea the child was allowed to swim. You would have written permission, so on that score you *might* be okay. I say might because they would investigate to see if you had been negligent (left the kids unattended, didn't have permission for them to swim, etc.)
I think waivers get a bad rap. Sure they won't protect you if you were actually negligent. But in cases where you were not, they can offer a degree of protection. You can still get sued! But the waiver may mean that the suit isn't able to go anywhere. I would rather have one than not.
That's why it's so important to have written procedures along with permission that parents read and sign.