JeepGirl6 07:45 PM 03-12-2011
This year was my first year for my In-home Child Care. My boyfriend has been unemployed for 10 months ( both of our names our on your house loan) When I did my taxes for 2010 I used the deduction allowed for my house insurance, taxes and interest, also depreciation...because we figured it would benefit me more because of him being unemployed. Well he just found out he got a full time job starting next week...For taxes for 2011, what happens if he wants to use these deductions???for our house ( we will most likely be married by then) Do I have to worry about anything if I don't deduct the house stuff...because I remember reading for the depreciation, it says you have to do it every year when doing taxes or was I reading it wrong??
TomCopeland 07:18 PM 03-13-2011
You will always want to claim the business portion of your house expenses (utilities, property tax, house depreciation, etc.) because they will reduce your social security taxes and income taxes. If your husband doesn't work at home, he won't be entitled to claim any of these expenses as a business expense. If you itemize your taxes you will claim the personal portion of property tax and mortgage interest on your Schedule A and the business portion on Form 8829 for your business.
So, you will continue to claim the house deductions for your business, no matter what.