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Old 02-10-2013, 10:17 PM
Malmom's Avatar
Malmom Malmom is offline Member
Join Date: Dec 2012
Location: Kentucky
Posts: 31
Default Claiming Depreciation?

This is the first time I've ever claimed depreciation. I purchased an iPad that I am wanting to claim, and we also purchased new living room furniture and dining room furniture as well.

I always use turbo tax. When I go to put in the information, its asking me for the percentage of time I used it in the business. Would this be my time space percentage that I enter in that spot? For the iPad, it mainly gets used during the day, and a little at night when everyone is gone. For total use I'd say 75% daycare use, 25% personal use. What do I put in that percentage place? It's asking me the same for the furniture, which gets used more for personal than business.

Also, it's telling me I can take a special depreciation, but it might affect my state depreciation. What is this about?
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Old 02-11-2013, 05:45 PM
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TomCopeland TomCopeland is offline
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Join Date: Jun 2010
Location: St. Paul, Minnesota
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Default Depreciation

When you have items that are used for both business and personal purposes the best way to go is to use your time-space % for all such items. If you are using some items a lot more than your time-space % you can claim a higher actual use %. But to do this you would need to keep records that show this. Just saying it's 75/25% without keeping at least a month or 2 of records is not enough.

There is a special 50% bonus depreciation rule that allows you do claim depreciation faster. You want to use this rule because it will give you a higher deduction. Some states do not recognize this rule, so you will have to add the amount you claimed with the special rule as income back onto your state tax return. Even if this happens, you are still better off using this rule.

Here's an article on this special rule:

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register:
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