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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 04-14-2016, 09:23 AM
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Snowmom Snowmom is offline
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Location: USA
Posts: 1,685
Default Help Tom!

I paid to get my taxes done this year and my accountant depreciated:
1. Windows we replaced: 39 years.
2. Water Heater we replaced: 7 years.
3. Furnace/AC replaced: 39 years.

Reading your 2015 tax changes handout this week, I thought that REPAIRS could be deducted in one year in 2015 vs spreading them out over 39 years.
Am I wrong in assuming since all 3 bulleted points failed and had to be replaced, they should be considered "repairs"?

Also, we purchased a new Rainbow Play Set at $3500- does the 50% bonus depreciation rule apply or does it have to be under $2500?

THANK YOU!
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Old 04-15-2016, 08:15 AM
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TomCopeland TomCopeland is offline
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Default Taxes

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Originally Posted by Snowmom View Post
I paid to get my taxes done this year and my accountant depreciated:
1. Windows we replaced: 39 years.
2. Water Heater we replaced: 7 years.
3. Furnace/AC replaced: 39 years.

Reading your 2015 tax changes handout this week, I thought that REPAIRS could be deducted in one year in 2015 vs spreading them out over 39 years.
Am I wrong in assuming since all 3 bulleted points failed and had to be replaced, they should be considered "repairs"?

Also, we purchased a new Rainbow Play Set at $3500- does the 50% bonus depreciation rule apply or does it have to be under $2500?

THANK YOU!
If you replaced less than half the windows, you can deduct the time-space % of them in one year as a repair. If the water heater cost less than $2,500 you can deduct the time-space % in one year. If it costs more, then depreciate it over 7 years and use the 50% bonus depreciation rule. Depreciate the furnace/AC over 39 years. You can use the 50% bonus rule on the Play Set because it doesn't have to cost less than $2,500 to use this rule.
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deduction - heating, deduction - home improvement, depreciate, depreciation - home, time space percentage

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