Default Style Register
Daycare.com Forum
Daycare and Taxes>2 Questions- Depreciation And Buying A Vehicle In 2012
KEG123 02:40 PM 01-07-2013
So my first question is about depreciation. In December I bought a new (to me) washer/dryer off CL for $400. I also bought a new (to me) couch off CL for $100. When I enter it into Minute Menu it asks me about depreciating it. Method gives me two options- 7 year straight line or 7 year 200% declining. Then gives me 2 options for Convention- Half year or Quarter Year. I'm not sure what to put in either space.

Next is regarding my new (to me) van I bought in March for 3,200. I paid cash. I use it to go to the bank and to do the grocery shopping. Do I use time/space for this too? or something else? Unsure on how to add this in to minute menu also.

Any advice is appreciated!
Reply
TomCopeland 10:29 AM 01-08-2013
Put down 7 years 200% declining and half year.

Don't use your time-space % for car expenses. Minute Menu allows you to enter the miles you drive each time you use your car primarily for business purposes. If you use the standard mileage rate, then you don't need to enter any specific car expenses (gas, oil, etc.) other than parking and car loan interest. Minute Menu has several reports you can print out that will show your car expenses.
Reply
KEG123 12:04 PM 01-08-2013
Thanks Tom!

As for the van, even though the main reason I purchased a van is because I needed to take the daycare kids with when I dropped my son off at school? Not doubting you obviously, but just want to make sure.
Reply
KEG123 01:24 PM 01-08-2013
Oh and for the depretiation would I fill that in on form 4562?
Reply
TomCopeland 02:42 PM 01-08-2013
Originally Posted by KEG123:
Oh and for the depretiation would I fill that in on form 4562?
Yes, use Form 4562 to depreciate your vehicle when you use the actual expenses method of claiming vehicle expenses (not the standard mileage method).

Check out my upcoming webinar February 12th: "Tax Changes for 2012: How to Avoid Mistakes on Your Tax Return" To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
Reply
Reply Up