Question For Tom....Vacuum Cleaner

[frugalmama4]

Good Morning Tom,

Thanks again for answering my questions yesterday!

So as am cleaning this morning I realize "I'm using a nice vacuum" we have one of those Kirby's it does just about everything...but pay for it self .

Can I deduct or depreciation this? We took out a simply interest loan in 2011 for it...stilling paying on it.

Thanks!

[TomCopeland]

vacuum cleaner

If you bought it new in 2011 you can use the 100% bonus depreciation rule and claim the time-space % of the cost all in 2011, as well as the time-space % of the interest you paid. Continue to claim the time-space % of the interest paid in 2012 on your 2012 taxes.


Join my on February 9th, 8:30pm Central time for my webinar "2012 Family Child Care Tax Update: How to Reduce Your Taxes ": http://events.r20.constantcontact.co...&llr=yatrx4cab

[frugalmama4]

Follow up question Tom

If you bought it new in 2011 you can use the 100% bonus depreciation rule and claim the time-space % of the cost all in 2011, as well as the time-space % of the interest you paid. Continue to claim the time-space % of the interest paid in 2012 on your 2012 taxes.


Join my on February 9th, 8:30pm Central time for my webinar "2012 Family Child Care Tax Update: How to Reduce Your Taxes ": http://events.r20.constantcontact.co...&llr=yatrx4cab

Thanks for your help!

I'm in Turbo Tax inputting all my numbers, don't see where I would put in for the interest paid on the vacuum cleaner loan. (the only section that ask for interest payments states for business loans only)

When I enter it in MMK it's included on the report schedule C worksheet...would this be correct?

[TomCopeland]

interest

Put the business portion of the interest under business loan in Turbo Tax. It will show up on Schedule C. This is one of the problems with Turbo Tax. It doesn't ask about loans that are business and personal.

Join me for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes" on February 9th, 8:30-10:00pm Eastern time: http://events.r20.constantcontact.co...&llr=yatrx4cab