Personal Property

[Abigail]

These are the items listed under my personal property:

Washer/Dryer
Snowblower
Lawnmower
Dishwasher
Carpet
Daycare Baby Toilet 100% $356



The toilet is only for daycare but I'm assuming everything else is T/S%. Are all these items listed in the right category being labeled as personal property on the tax return?

I also bought a printer last year and I'm thinking it was over $100 but is that considered personal property or do I just add it to my receipts that are under $100? Now that I think about it the only things listed on personal property to be depreciated are items over $100 no matter what they are right? Then it's a matter of whether they're exclusively used for daycare or just time/space percentage?

[TomCopeland]

personal property

These are the items listed under my personal property:

Washer/Dryer
Snowblower
Lawnmower
Dishwasher
Carpet
Daycare Baby Toilet 100% $356



The toilet is only for daycare but I'm assuming everything else is T/S%. Are all these items listed in the right category being labeled as personal property on the tax return?

I also bought a printer last year and I'm thinking it was over $100 but is that considered personal property or do I just add it to my receipts that are under $100? Now that I think about it the only things listed on personal property to be depreciated are items over $100 no matter what they are right? Then it's a matter of whether they're exclusively used for daycare or just time/space percentage?

"Personal property" is a term used by the IRS to describe items that are not attached to your home or your land. It sounds like this is property you only use personally, but it doesn't mean that.

Yes, use the time-space % on the above items except the toilet which is 100%. The general rule is to deduct in one year items costing less than $100. This is a rough rule of thumb, so I'd claim a $110 item in one year. Otherwise, it should be depreciated. If you use it 100% for your business, deduct 100% of the cost. If it's used by your business and family, deduct the time-space % of the cost.

[Abigail]

So are things in the "personal property" category over roughly a hundred dollars depreciated over 7 years?

Also, if we paid $150 when we moved into the house in 2011 to change the locks on the doors, is it able to be part of a start up cost because it was 2 months before 2012 when I got my first clients or can I not use things that were not 100% for daycare prior to 2012 as my first year of business?

I know that I have some daycare toy and furniture receipts in 2011 that I think I can still use as 2012 was my first year of business, is that correct? Our washer and dryer was actually bought in 2011 does that make a difference of putting it on 2012 because I have the receipt? Half of the laundry we do is daycare laundry.

[Abigail]

Update on my last questions? If some things were purchased in 2011 do I claim them on my start up cost or no?

Also, we had to have a furnace inspection prior to getting my license which was also in 2011. Do I use that receipt as a start up fee's cost? It was about $117 so that is okay to use as a 100% expense or should it just be t/s?

[TomCopeland]

personal property

So are things in the "personal property" category over roughly a hundred dollars depreciated over 7 years?

Also, if we paid $150 when we moved into the house in 2011 to change the locks on the doors, is it able to be part of a start up cost because it was 2 months before 2012 when I got my first clients or can I not use things that were not 100% for daycare prior to 2012 as my first year of business?

I know that I have some daycare toy and furniture receipts in 2011 that I think I can still use as 2012 was my first year of business, is that correct? Our washer and dryer was actually bought in 2011 does that make a difference of putting it on 2012 because I have the receipt? Half of the laundry we do is daycare laundry.

Yes, personal property (other than office equipment) is depreciated over 7 years.

Maintenance and repair expenses are not subject to the general rule that you must depreciate items costing more than $100. They can be claimed in one year. However, because you bought the locks before you went into business and they weren't bought with the day care business in mind, you can't deduct any of it. If you bought a smoke detector or toys in 2011 intending to use them in your business in 2012, then you could deduct them in 2012. If these items cost more than $100, you would depreciate them, if not you could claim them in one year.

You can start depreciating all furniture and appliances you owned before your business began, whether or not you have a receipt. Take pictures of all household items you owned before your business began that you started using once your business did begin. Estimate their fair market value at the time you started using them in your business.

[TomCopeland]

Depreciation

Update on my last questions? If some things were purchased in 2011 do I claim them on my start up cost or no?

Also, we had to have a furnace inspection prior to getting my license which was also in 2011. Do I use that receipt as a start up fee's cost? It was about $117 so that is okay to use as a 100% expense or should it just be t/s?

Items purchased in 2011 that cost more than $100 must be depreciated starting in 2012. Items purchased in 2011 that cost less than $100 and were purchased with the business in mind can be deducted in 2012. Items purchased in 2011 that cost less than $100 and were not purchased with the business in mind must be depreciated starting in 2012.

For all items, if it is used by your business and your family (furnace inspection) you must use your time-space %.