Daycare.com Forum
Daycare and Taxes>50% Bonus Rule?
krosey5 11:52 AM 07-09-2013
Was looking through other posts & the 50% bonus rule was mentioned. Can you explain what that is, please?
TomCopeland 04:32 PM 07-09-2013
Sure. It's a tax law that allows family child care providers (and other businesses) to claim 50% of normal depreciation in 2013 for the purchase of any new item for their business (except home improvements and the home). This includes, furniture, appliances, fences, equipment, etc.
So, if you bought a new $1,000 swing set in 2013 you would normally depreciate it over 7 years. Let's say you use it 100% in your business: Using the accelerated method of depreciation you would normally claim 14.29% of the cost in the first year, or $142.90. Instead, using the 50% bonus rule you could deduct $500 in the first year and depreciate the remaining $500 over 7 years.
There's no reason not to use the 50% bonus depreciation rule in 2013 when you purchase new items.
Here's an article I wrote on this:http://www.tomcopelandblog.com/2013/...k-in-2013.html
So, if you bought a new $1,000 swing set in 2013 you would normally depreciate it over 7 years. Let's say you use it 100% in your business: Using the accelerated method of depreciation you would normally claim 14.29% of the cost in the first year, or $142.90. Instead, using the 50% bonus rule you could deduct $500 in the first year and depreciate the remaining $500 over 7 years.
There's no reason not to use the 50% bonus depreciation rule in 2013 when you purchase new items.
Here's an article I wrote on this:http://www.tomcopelandblog.com/2013/...k-in-2013.html
Michael 09:10 PM 07-09-2013
Pushing this back up.
Familycare71 06:42 AM 07-10-2013
So I have been using turbo tax the past few years.. But now being on this site I'm questioning that choice! I haven't depreciated anything over a time-
What are your thoughts on turbo tax and how do I find a child care friendly tax person?? The last ones I had were of NO help as far as my business goes... Which was why I switched...
Thanks!
What are your thoughts on turbo tax and how do I find a child care friendly tax person?? The last ones I had were of NO help as far as my business goes... Which was why I switched...
Thanks!
TomCopeland 07:17 AM 07-10-2013
Originally Posted by Christie71:
So I have been using turbo tax the past few years.. But now being on this site I'm questioning that choice! I haven't depreciated anything over a time-
What are your thoughts on turbo tax and how do I find a child care friendly tax person?? The last ones I had were of NO help as far as my business goes... Which was why I switched...
Thanks!
You can use IRS Form 3115 Application for Change in Accounting Method to recapture all previously unclaimed depreciation from previous years. File it with your 2013 tax return. See my article on this:http://www.tomcopelandblog.com/2011/...ductions-.htmlSo I have been using turbo tax the past few years.. But now being on this site I'm questioning that choice! I haven't depreciated anything over a time-
What are your thoughts on turbo tax and how do I find a child care friendly tax person?? The last ones I had were of NO help as far as my business goes... Which was why I switched...
Thanks!
Don't use Turbo Tax unless you already know how to fill out your tax return. See my article on this:http://www.tomcopelandblog.com/2011/...-software.html
Here's a link to my tax preparer directory:http://www.nafcc.org/index.php?optio...499&Itemid=105
krosey5 08:09 AM 07-10-2013
Thank you so much, Tom!!!
Familycare71 05:08 AM 07-12-2013
Originally Posted by TomCopeland:
You can use IRS Form 3115 Application for Change in Accounting Method to recapture all previously unclaimed depreciation from previous years. File it with your 2013 tax return. See my article on this:http://www.tomcopelandblog.com/2011/...ductions-.html
Don't use Turbo Tax unless you already know how to fill out your tax return. See my article on this:http://www.tomcopelandblog.com/2011/...-software.html
Here's a link to my tax preparer directory:http://www.nafcc.org/index.php?optio...499&Itemid=105
Thank you!!!!You can use IRS Form 3115 Application for Change in Accounting Method to recapture all previously unclaimed depreciation from previous years. File it with your 2013 tax return. See my article on this:http://www.tomcopelandblog.com/2011/...ductions-.html
Don't use Turbo Tax unless you already know how to fill out your tax return. See my article on this:http://www.tomcopelandblog.com/2011/...-software.html
Here's a link to my tax preparer directory:http://www.nafcc.org/index.php?optio...499&Itemid=105
Familycare71 05:11 AM 07-12-2013
Nothing came up in the search for a tax person... 
now what?
now what?
TomCopeland 07:46 AM 07-12-2013
Originally Posted by Christie71:
Nothing came up in the search for a tax person... now what?
Ask other providers who use tax preparers. Ask your local CCR&R if they have names. Here's an article I wrote with links to tax professional organizations: http://www.tomcopelandblog.com/2011/...fessional.htmlNothing came up in the search for a tax person...
now what?