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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 03-26-2020, 02:04 PM
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Default Home Updates

We did some updates to our kitchen throughout 2019 I paid a contractor to replace countertops (over $5k) and paid a separate contractor to replace floor tile/back splash ($1,500) I purchased the tile($500). Do I have to add these up and depreciate them or can I separate and deduct the business portion in one year for the tile work and purchase of the tile and I assume I would have to depreciate the countertops?

I also had another contractor come in last year and scrape, texture, and repaint ceilings($2,200) in most of the downstairs and a portion of the upstairs(all areas used for the daycare). Can I deduct this in one year?
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Old 03-26-2020, 03:08 PM
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Here are some more threads regarding deductions for home improvements: https://www.daycare.com/forum/tags.p...me+improvement
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Old 03-28-2020, 02:25 PM
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Default depreciation?

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Originally Posted by goldstar View Post
We did some updates to our kitchen throughout 2019 I paid a contractor to replace countertops (over $5k) and paid a separate contractor to replace floor tile/back splash ($1,500) I purchased the tile($500). Do I have to add these up and depreciate them or can I separate and deduct the business portion in one year for the tile work and purchase of the tile and I assume I would have to depreciate the countertops?

I also had another contractor come in last year and scrape, texture, and repaint ceilings($2,200) in most of the downstairs and a portion of the upstairs(all areas used for the daycare). Can I deduct this in one year?
Is this a kitchen remodeling or a repair? If it's a repair you can deduct the business portion in one year. If it's an improvement you must depreciate the business portion over 39 years. This is a close call. If you had also replaced the cabinets and appliances and lighting I would have called this a home improvement. So, my conclusion is that this is a repair. The ceiling work is clearly a repair.
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