Remodel Tax Question - How To Enter In MMK

[WImom]

We did a remodel project of my daycare space that is 100% for business. I assume I take all receipts for that and add them together for a grand total, right? Then when I enter into MMK what would I put that under? Also my husband and I did all the work so that can go under our time worked after hours correct?

We also removed some trees and layed down sod in our backyard. I do have a daycare outside space that is 100% that we didn't work on but we do use this space ocasionally for the daycare. Would all that work be T/S or does it not count if we don't use it all the time? (We have a fence seperating the spaces). If I can count it would it go under repairs or something else?

Thanks so much for your help!

[nanglgrl]

I would like to know about this also. I'm pretty sure you can't claim 100% of the remodel even if it was 100% business use because it ups the value of the property.

[WImom]

Interesting, hopefully we'll hear soon. My remodel was converting a living room/dining room into a daycare space with a bathroom. (incase it matters on if I can claim all of it or not I wanted to specify)

[TomCopeland]

Remodeling

We did a remodel project of my daycare space that is 100% for business. I assume I take all receipts for that and add them together for a grand total, right? Then when I enter into MMK what would I put that under? Also my husband and I did all the work so that can go under our time worked after hours correct?

We also removed some trees and layed down sod in our backyard. I do have a daycare outside space that is 100% that we didn't work on but we do use this space ocasionally for the daycare. Would all that work be T/S or does it not count if we don't use it all the time? (We have a fence seperating the spaces). If I can count it would it go under repairs or something else?

Thanks so much for your help!

Add up all the costs of the remodeling costs and depreciate it over 39 years. Since you are using the area 100% for your business, depreciate 100% of the cost. You can also count all of the hours you and your husband worked on this remodeling project.

Apply your T/S% to the cost of removal of the trees and the sod because you are using the area both for business and personal purposes. Claim both costs as a repair/maintenance.