New daycare van

[momofsix]

So MI just outlawed 12 passenger vans for daycare homes. We got ONE day's notice My sister used one to transport kids to and from school and had to go out and buy a new vehicle JUST for that purpose. She spent $5000 on it. Money she was NOT planning on spending. She will use this van for dc use only-can she deduct the full cost of the van since the only reason she got it is for her daycare?

[sharlan]

I don't know the answer to your question (I think so), but WOW!

I can somewhat understand their reasoning as some kids have died after being left in vans. But, from what I have read, it's mostly centers that have had the deaths. I've had 12 pass vans for 16 years. I'd really have a problem if I had to give it up.

[Country Kids]

So MI just outlawed 12 passenger vans for daycare homes. We got ONE day's notice My sister used one to transport kids to and from school and had to go out and buy a new vehicle JUST for that purpose. She spent $5000 on it. Money she was NOT planning on spending. She will use this van for dc use only-can she deduct the full cost of the van since the only reason she got it is for her daycare?

What did she get instead of a 12 passenger van? I'm a little confused that if they outlawed it what would she be able to drive instead?

[momofsix]

What did she get instead of a 12 passenger van? I'm a little confused that if they outlawed it what would she be able to drive instead?

She's in MI where we can only have 6 kids so she got a used GMC safari that will fit 6 carseats.

She's lucky that she was able to get something. If I still had my 12 passenger there would have been NO WAY I could just come up with the money to buy a new van-especially with no notice! I have no idea what the state was thinking when they did that!

[TomCopeland]

Deduct a van

So MI just outlawed 12 passenger vans for daycare homes. We got ONE day's notice My sister used one to transport kids to and from school and had to go out and buy a new vehicle JUST for that purpose. She spent $5000 on it. Money she was NOT planning on spending. She will use this van for dc use only-can she deduct the full cost of the van since the only reason she got it is for her daycare?

The percentage of van expenses she can deduct depends on the percentage of business miles she drives. If 100% of the miles she drives is business, she can deduct 100% of the expenses (gas, oil, repairs, etc.). However, she can't deduct the entire cost of the van in the first year. She must depreciate it over 5 years.

[momofsix]

Thank you Tom!