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Daycare and Taxes>Toy Depreciation?
midaycare 12:13 PM 08-25-2017
Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.
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TomCopeland 03:34 PM 08-25-2017
Originally Posted by midaycare:
Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.
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Mom2Two 03:58 PM 08-25-2017
Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?
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MarinaVanessa 12:22 PM 08-26-2017
Originally Posted by TomCopeland:
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine
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TomCopeland 01:39 PM 08-27-2017
Originally Posted by Mom2Two:
Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?
This rule is for all businesses.
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TomCopeland 01:40 PM 08-27-2017
Originally Posted by MarinaVanessa:
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine
Yes, completely deductible in one year. Same with the $400 machine. Go crazy.
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midaycare 11:31 AM 08-28-2017
Originally Posted by TomCopeland:
New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.
That is amazing!!!!! Thanks Tom!
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daycarediva 08:34 PM 08-29-2017
Originally Posted by MarinaVanessa:
WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine
YES! I deducted mine last year. AND all of the cartridges.
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Tags:depreciation, depreciation - toys, tom copeland
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