Daycare.com Forum Daycare Forum

Go Back   Daycare.com Forum > Daycare and Taxes

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.

Reply
 
Thread Tools Display Modes
  #1  
Old 01-06-2011, 06:13 PM
newtodaycare22's Avatar
newtodaycare22 newtodaycare22 is offline
Daycare.com Member
 
Join Date: Apr 2010
Location: Maryland
Posts: 664
Default Depreciation?

We put up a fence for daycare. MMK gives me the option of 15 year straight line depreciation, 15 year-150% declining, or other..

Can someone put this in English for me

Also, I bought a car (for daycare) for 6000. I only opened in August and my income is around 9000. With the other start up deductions...I'm obviously in the negative for income. Does that raise eyebrow for the IRS? Or no, since I'm a new business. Thanks!
Reply With Quote
  #2  
Old 01-07-2011, 08:12 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,060
Default Fence

Fence - When depreciating an item you purchase for your business there are usually two different methods you can use to depreciate them. The first is called a straight line method. This means that you will get the same amount of depreciation deduction each year (over 15 years in the case of a fence). The second is called an accelerated method. This means that you get a large depreciation deduction in the first year and the amount then steadily declines over the life of the depreciation (again 15 years for a fence).

In general, it's best to use the accelerated method because it gets you deductions faster. You won't have to worry about paying anything back if you go out of business before the end of 15 years.

(Were you sure you really wanted to know this?)

Car - don't worry about claiming too many expenses in your first year that create a loss. This is typical. Buying a $6000 car doesn't necessary get you that much in deductions unless you used it more than 50% in your business.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #3  
Old 01-07-2011, 09:35 AM
newtodaycare22's Avatar
newtodaycare22 newtodaycare22 is offline
Daycare.com Member
 
Join Date: Apr 2010
Location: Maryland
Posts: 664
Default Car

Quote:
Car - don't worry about claiming too many expenses in your first year that create a loss. This is typical. Buying a $6000 car doesn't necessary get you that much in deductions unless you used it more than 50% in your business.
Thanks for the advice about not claiming too much.

with the car...

Actually, we bought a large expedition just for daycare. We have 3 other cars but they cannot fit the car seats. So, its probably 99% daycare use, with a very rare errand.
Reply With Quote
Reply

Tags
deductions, depreciation, taxes

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Depreciation vs Expense Which Is Which? legomom922 Daycare and Taxes 1 02-20-2011 10:58 AM
Another Mortgage Depreciation Question marniewon Daycare and Taxes 1 02-08-2011 03:56 PM
Depreciation Question for Tom llove530 Daycare and Taxes 8 01-31-2011 09:19 PM
Home Improvement Depreciation: Which Form? kitkat Daycare and Taxes 2 01-28-2011 04:20 AM
Help - Another Depreciation Question llove530 Daycare and Taxes 7 01-11-2011 10:24 AM


All times are GMT -7. The time now is 12:33 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming