Daycare.com Forum
Daycare and Taxes>Computer Components
MarinaVanessa 02:23 PM 01-29-2013
This one's probably for Tom Copeland:
I know that computer, printers etc. go under the Computer/Printer/Other Office Equipment category for taxes but what about computer parts and components? I'm not exactly sure what category to put the following items in (repairs, Office Equipmentor or different category) or how to deduct them (time-space% or depreciation and by how many years etc) because of their purpose and cost.
Portable/External hardrive $109.99 (to put all of the kid's movie digital copies on since we use apple TV to play movies)
Router $129.99 (upgraded our old one)
USB Switch & Cables $24.99 (so my computer & laptop can share speakers)
Notebook Hardrive $69.99 (to replace my crashed one)
Desktop computer Fan $59.99 (to improve peformance on my desktop, it was overheating)
4 Flashdrives $16.99 each (to backup my files)
Thanks so much in advance to whoever can answer this one for me.
I know that computer, printers etc. go under the Computer/Printer/Other Office Equipment category for taxes but what about computer parts and components? I'm not exactly sure what category to put the following items in (repairs, Office Equipmentor or different category) or how to deduct them (time-space% or depreciation and by how many years etc) because of their purpose and cost.
Portable/External hardrive $109.99 (to put all of the kid's movie digital copies on since we use apple TV to play movies)
Router $129.99 (upgraded our old one)
USB Switch & Cables $24.99 (so my computer & laptop can share speakers)
Notebook Hardrive $69.99 (to replace my crashed one)
Desktop computer Fan $59.99 (to improve peformance on my desktop, it was overheating)
4 Flashdrives $16.99 each (to backup my files)
Thanks so much in advance to whoever can answer this one for me.
TomCopeland 02:58 PM 01-29-2013
I would put all of these expenses under Office Expenses on Schedule C and claim them in one year. If you use any of these items 100% for your business, deduct 100% of the cost. If it's shared, use your time-space % or you can calculate your own actual business use percent.
MarinaVanessa 03:06 PM 01-29-2013
Originally Posted by TomCopeland:
I would put all of these expenses under Office Expenses on Schedule C and claim them in one year. If you use any of these items 100% for your business, deduct 100% of the cost. If it's shared, use your time-space % or you can calculate your own actual business use percent.
Thank you so much Tom ... I totally would have screwed this one up I would put all of these expenses under Office Expenses on Schedule C and claim them in one year. If you use any of these items 100% for your business, deduct 100% of the cost. If it's shared, use your time-space % or you can calculate your own actual business use percent.
. You are awesome.
MarinaVanessa 03:28 PM 01-29-2013
Okay so now does anyone know how to do all of what Tom said in Minute Menu?
I tried and it does not give me a depreciation option for 1 year only 5-year straight line, 5 year 200% declining and other. Even when I select other the convention options are half-year, mid-quarter and other so I'm a little lost.
I tried and it does not give me a depreciation option for 1 year only 5-year straight line, 5 year 200% declining and other. Even when I select other the convention options are half-year, mid-quarter and other so I'm a little lost.
mema 06:06 PM 01-29-2013
There is a category called office expenses and I don't think it has the straight line stuff.
TomCopeland 02:00 PM 01-31-2013
This is an area of Minute Menu that is confusing. (Sorry, I wrote this section myself!)
Short answer: ignore all of this when entering items in Minute Menu. Your tax preparer can sort this out later or you can deal with this when filing your taxes. My book 2012 Family Child Care Tax Workbook and Organizer explains this in detail.
Long answer: When depreciating an item you will have to know what depreciation "method" to use: straight line or declining balance. Essentially, straight line allows you to deduct the same amount each year and declining balance allows you to deduct more in the early years and less in the later years.
You will also need to know "convention" for each item you depreciate: mid-month, half year or mid-quarter. Basically, use half year for everything except the home and home improvements. Mid-quarter only comes into play if you bought more than 40% of the items you are depreciating in the last 3 months of the year.
Short answer: ignore all of this when entering items in Minute Menu. Your tax preparer can sort this out later or you can deal with this when filing your taxes. My book 2012 Family Child Care Tax Workbook and Organizer explains this in detail.
Long answer: When depreciating an item you will have to know what depreciation "method" to use: straight line or declining balance. Essentially, straight line allows you to deduct the same amount each year and declining balance allows you to deduct more in the early years and less in the later years.
You will also need to know "convention" for each item you depreciate: mid-month, half year or mid-quarter. Basically, use half year for everything except the home and home improvements. Mid-quarter only comes into play if you bought more than 40% of the items you are depreciating in the last 3 months of the year.