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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 02-07-2016, 08:02 AM
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LittleScholars LittleScholars is offline
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Default Tom- Another Home Improvement Tax Question

As mentioned in my last post, I opened my daycare in November 2015, so this is the first year I'm filing taxes as a provider. We bought our home 1.5 years before opening and made a tremendous amount of land improvements. My understanding is that these need to be depreciated over 39 years. My questions are:
-Before totaling land improvements, should I divide each cost by 39 years?
-When totaling the value of my home (home cost, minus land value, plus home improvements), do I include the full value of each home improvement in that total?
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Old 02-08-2016, 07:03 AM
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TomCopeland TomCopeland is offline
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Default depreciation

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Originally Posted by LittleScholars View Post
As mentioned in my last post, I opened my daycare in November 2015, so this is the first year I'm filing taxes as a provider. We bought our home 1.5 years before opening and made a tremendous amount of land improvements. My understanding is that these need to be depreciated over 39 years. My questions are:
-Before totaling land improvements, should I divide each cost by 39 years?
-When totaling the value of my home (home cost, minus land value, plus home improvements), do I include the full value of each home improvement in that total?
Add up all the full value of home improvements you made before November 2015 and add this to the purchase price of your home. Don't divide by 39 years. Once they get added, then you will depreciate the higher value of your home over 39 years.
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Old 02-08-2016, 10:31 AM
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LittleScholars LittleScholars is offline
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Thank you!!!
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