New Furnace

[itlw8]

I had my taxes done today. Now while I have been happy there before, the person who did ours before has left.The new guy just made me feel he had no idea what he was doing with family childcare.

We had to replace our furnace in January We did get the energy credit for it but the preparer said I could not depreciate the time/share percentage of the furnace because the house already had a furnace.

He was wrong wasn't he? After I got home I sent an email to the office. I know they check all the returns before efiling.

[TomCopeland]

furnance

You are entitled to depreciate the cost of the new furnace over 39 years as a home improvement. You must apply the time-space % to the cost. However, there is a limit on the amount of the energy credit that you can claim, if your time-space % is above 20% (which it probably is). Here's an article that explains how to claim the credit: https://www.familychildcaretaxes.com...cordNumber=149

I am very concerned that your tax preparer would not allow you to depreciate your furnace with the excuse that you already had one. This is crazy, and shows that he doesn't understand your business. You should have your tax return reviewed by someone else who has experience with family child care providers.

Join me this coming Thursday (February 9th) for my webinar "2011 Family Child Care Tax Update: How to Reduce Your Taxes". I'll explain the new tax rules (100% bonus depreciation, lower Social Security tax rates, higher mileage and standard meal allowance rates, and more). For details:http://events.r20.constantcontact.co...&llr=yatrx4cab

[itlw8]

Thank you. While I am not happy to see the second part of your answer I would not like to be audited either. He did put the entire credit as personal use.

I sent an email to the company and asked the owner to review my return before it is efiled Monday. I also asked to not have my appointment with this preparer next year. I have always been happy there but not with this new guy.

They must hate when I say Well Tom Copeland said...... Your books and your class I attended has made a big difference in my business. I may not know the answer but I know where to look for the answer. Thank you for all you do for family childcare.

Meg