100% vs T/S

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  • krosey5
    Daycare.com Member
    • Jun 2012
    • 65
    #1

    100% vs T/S

    Sorry, me again

    I purchased a wall cabinet & 2 book shelves for my daycare room. I bought the wall cabinet to house craft supplies for the daycare & the book shelves to hold toys (obviously) & as dividers. I would not have purchased these items if I had not started a daycare. Can I claim 100% business use or do I need to do T/S?

    Keep in mind, I have 3 young children of my own that play in the room before, during & after care. BUT again, I would NOT have purchased IF I hadn't started the business. HELP!
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    • TomCopeland
      Business Author/Trainer
      • Jun 2010
      • 3062
      #2
      deductions

      Originally posted by krosey5
      Sorry, me again

      I purchased a wall cabinet & 2 book shelves for my daycare room. I bought the wall cabinet to house craft supplies for the daycare & the book shelves to hold toys (obviously) & as dividers. I would not have purchased these items if I had not started a daycare. Can I claim 100% business use or do I need to do T/S?

      Keep in mind, I have 3 young children of my own that play in the room before, during & after care. BUT again, I would NOT have purchased IF I hadn't started the business. HELP!
      It's not important why you bought something, it's how you use it. If you use the cabinet and shelves 100% for your business, then you can deduct 100% of the cost. If not, then use your time-space % or calculate your actual business use percent.

      Sometimes this can work in your favor. If you bought a toy for your own child (birthday present) but your child plays with this toy with the day care children, you can deduct the time-space percentage of the toy!
      http://www.tomcopelandblog.com
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        • krosey5
          Daycare.com Member
          • Jun 2012
          • 65
          #3
          Originally posted by TomCopeland
          It's not important why you bought something, it's how you use it. If you use the cabinet and shelves 100% for your business, then you can deduct 100% of the cost. If not, then use your time-space % or calculate your actual business use percent.

          Sometimes this can work in your favor. If you bought a toy for your own child (birthday present) but your child plays with this toy with the day care children, you can deduct the time-space percentage of the toy!
          Gotcha! Makes sense. Thanks so much!
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