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Hello from Houston, TX I'm new to this site hope I'm posting correctly.
So I started preparing for my home child care business as of Oct 3rd, 2011 (advertising/contacts/policy, setting up play areas, licensing classes, purchasing items etc). However, I did not take in my first kid until Dec 19h, 2011 so my question(s) are
1.) Do I start deducting my expenses (property tax, mortgage interest, utilities, house insurance, house depreciation, furniture, appliances, equipment, etc.) from Oct 3rd, 2011 or would it be from Dec 19th, 2011?
2nd issue
I do use MMK! great software, after inputting all my expenses and running reports I'm still a little lost. I have used Turbo Tax for the last 2-years to do my own taxes. So I have been playing around with it this year inputting my numbers from MMK, some add up some do not.
2.) I'm getting some real big special deprecation numbers, I'm thinking it has something to do with the 100% and/or 50% Bonus deprecation rules?
e.g( thinking a sofa & love seat I purchased back in 2010 for $1591.00 used a 100% for personal use up until the business started (Oct 3rd or Dec 19th 2011) not sure which date is my actual start date.
Now that the business is up and running the sofa & love seat are used a 100% for business (no family use at all, I have to living areas in my home) Turbo Tax is giving the whole $1591 as a special deprecation, anyone know if the is correct? Help please thanks....
So I started preparing for my home child care business as of Oct 3rd, 2011 (advertising/contacts/policy, setting up play areas, licensing classes, purchasing items etc). However, I did not take in my first kid until Dec 19h, 2011 so my question(s) are
1.) Do I start deducting my expenses (property tax, mortgage interest, utilities, house insurance, house depreciation, furniture, appliances, equipment, etc.) from Oct 3rd, 2011 or would it be from Dec 19th, 2011?
2nd issue
I do use MMK! great software, after inputting all my expenses and running reports I'm still a little lost. I have used Turbo Tax for the last 2-years to do my own taxes. So I have been playing around with it this year inputting my numbers from MMK, some add up some do not.
2.) I'm getting some real big special deprecation numbers, I'm thinking it has something to do with the 100% and/or 50% Bonus deprecation rules?
e.g( thinking a sofa & love seat I purchased back in 2010 for $1591.00 used a 100% for personal use up until the business started (Oct 3rd or Dec 19th 2011) not sure which date is my actual start date.
Now that the business is up and running the sofa & love seat are used a 100% for business (no family use at all, I have to living areas in my home) Turbo Tax is giving the whole $1591 as a special deprecation, anyone know if the is correct? Help please thanks....
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