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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 01-28-2019, 07:47 AM
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Firefly Firefly is offline
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Default Home Write-Offs

If we put in a fireplace would we be able to write off the cost? Also what about finishing a basement? Would there be any tax benefit to that? Or would it just be the t/s that would change if I used part of it for daycare?
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Old 01-29-2019, 03:40 PM
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Default expenses

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Originally Posted by Firefly View Post
If we put in a fireplace would we be able to write off the cost? Also what about finishing a basement? Would there be any tax benefit to that? Or would it just be the t/s that would change if I used part of it for daycare?
If you use the fireplace in your business you could deduct time-space% of the cost. Same for the basement. If either costs are less than $2,500 you can deduct the business portion in one year. If more, then treat them as a home improvement and depreciate over 39 years.
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Old 02-05-2020, 08:16 AM
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Default water heater

We had to put in a new water heater in 2019...the old one quit. The cost was under $2,000. I realize other appliances would use the T/ space percent in one year but was not sure if this qualified for this method as well ?
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Old 02-05-2020, 09:17 AM
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I believe it would qualify. You use your hot water heater to wash daycare pots/pans, dishes and do daycare laundry and wash the little oneís hands, donít you?
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Old 02-07-2020, 07:15 AM
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Default water heater

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We had to put in a new water heater in 2019...the old one quit. The cost was under $2,000. I realize other appliances would use the T/ space percent in one year but was not sure if this qualified for this method as well ?
Providers can deduct the business portion of any expense in one year, without having to depreciate it. The exceptions are the purchase of a home, home improvement and home addition.
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Old 02-11-2020, 07:33 AM
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Default HVAC Deduction

Do I have to depreciate a new ac/heat pump ($6500), or can this be expensed in one year? Iím hearing conflicting answers.
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Old 02-11-2020, 10:12 AM
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Default ac/heat pump

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Do I have to depreciate a new ac/heat pump ($6500), or can this be expensed in one year? Iím hearing conflicting answers.
This sounds like a home improvement that should be depreciated over 39 years and it represents more than half of the cooling/heating system in your home. See my article about exceptions to this rule:http://tomcopelandblog.com/how-to-de...me-improvement
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