50% Bonus Rule?

[krosey5]

Was looking through other posts & the 50% bonus rule was mentioned. Can you explain what that is, please?

[TomCopeland]

50% bonus depreciation

Sure. It's a tax law that allows family child care providers (and other businesses) to claim 50% of normal depreciation in 2013 for the purchase of any new item for their business (except home improvements and the home). This includes, furniture, appliances, fences, equipment, etc.

So, if you bought a new $1,000 swing set in 2013 you would normally depreciate it over 7 years. Let's say you use it 100% in your business: Using the accelerated method of depreciation you would normally claim 14.29% of the cost in the first year, or $142.90. Instead, using the 50% bonus rule you could deduct $500 in the first year and depreciate the remaining $500 over 7 years.

There's no reason not to use the 50% bonus depreciation rule in 2013 when you purchase new items.

Here's an article I wrote on this:http://www.tomcopelandblog.com/2013/...k-in-2013.html

[Michael]

Pushing this back up.

[Familycare71]

So I have been using turbo tax the past few years.. But now being on this site I'm questioning that choice! I haven't depreciated anything over a time-
What are your thoughts on turbo tax and how do I find a child care friendly tax person?? The last ones I had were of NO help as far as my business goes... Which was why I switched...
Thanks!

[TomCopeland]

turbo tax

So I have been using turbo tax the past few years.. But now being on this site I'm questioning that choice! I haven't depreciated anything over a time-
What are your thoughts on turbo tax and how do I find a child care friendly tax person?? The last ones I had were of NO help as far as my business goes... Which was why I switched...
Thanks!

You can use IRS Form 3115 Application for Change in Accounting Method to recapture all previously unclaimed depreciation from previous years. File it with your 2013 tax return. See my article on this:http://www.tomcopelandblog.com/2011/...ductions-.html

Don't use Turbo Tax unless you already know how to fill out your tax return. See my article on this:http://www.tomcopelandblog.com/2011/...-software.html

Here's a link to my tax preparer directory:http://www.nafcc.org/index.php?optio...499&Itemid=105

[krosey5]

Thank you so much, Tom!!!

[Familycare71]

You can use IRS Form 3115 Application for Change in Accounting Method to recapture all previously unclaimed depreciation from previous years. File it with your 2013 tax return. See my article on this:http://www.tomcopelandblog.com/2011/...ductions-.html

Don't use Turbo Tax unless you already know how to fill out your tax return. See my article on this:http://www.tomcopelandblog.com/2011/...-software.html

Here's a link to my tax preparer directory:http://www.nafcc.org/index.php?optio...499&Itemid=105

Thank you!!!!happyface

[Familycare71]

Nothing came up in the search for a tax person... :confused: now what?

[TomCopeland]

Tax professional

Nothing came up in the search for a tax person... :confused: now what?

Ask other providers who use tax preparers. Ask your local CCR&R if they have names. Here's an article I wrote with links to tax professional organizations: http://www.tomcopelandblog.com/2011/...fessional.html