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Daycare and Taxes>Home Write-Offs
Firefly 07:47 AM 01-28-2019
If we put in a fireplace would we be able to write off the cost? Also what about finishing a basement? Would there be any tax benefit to that? Or would it just be the t/s that would change if I used part of it for daycare?
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TomCopeland 03:40 PM 01-29-2019
Originally Posted by Firefly:
If we put in a fireplace would we be able to write off the cost? Also what about finishing a basement? Would there be any tax benefit to that? Or would it just be the t/s that would change if I used part of it for daycare?
If you use the fireplace in your business you could deduct time-space% of the cost. Same for the basement. If either costs are less than $2,500 you can deduct the business portion in one year. If more, then treat them as a home improvement and depreciate over 39 years.
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buddie65 08:16 AM 02-05-2020
We had to put in a new water heater in 2019...the old one quit. The cost was under $2,000. I realize other appliances would use the T/ space percent in one year but was not sure if this qualified for this method as well ?
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Sunshine69 09:17 AM 02-05-2020
I believe it would qualify. You use your hot water heater to wash daycare pots/pans, dishes and do daycare laundry and wash the little oneís hands, donít you?
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TomCopeland 07:15 AM 02-07-2020
Originally Posted by buddie65:
We had to put in a new water heater in 2019...the old one quit. The cost was under $2,000. I realize other appliances would use the T/ space percent in one year but was not sure if this qualified for this method as well ?
Providers can deduct the business portion of any expense in one year, without having to depreciate it. The exceptions are the purchase of a home, home improvement and home addition.
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Unregistered 07:33 AM 02-11-2020
Do I have to depreciate a new ac/heat pump ($6500), or can this be expensed in one year? Iím hearing conflicting answers.
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TomCopeland 10:12 AM 02-11-2020
Originally Posted by Unregistered:
Do I have to depreciate a new ac/heat pump ($6500), or can this be expensed in one year? Iím hearing conflicting answers.
This sounds like a home improvement that should be depreciated over 39 years and it represents more than half of the cooling/heating system in your home. See my article about exceptions to this rule:http://tomcopelandblog.com/how-to-de...me-improvement
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Tags:deduction - basement, deduction - heating, deduction - home improvement
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