Deducting a Piano?

[CrackerJacks]

A friend is selling me a piano for $150. Can I deduct the full cost in one year, or do I have to depreciate?

[Michael]

Good question. I would suppose if it were to be used by your daycare for learning purposes it would be a deduction but I would bet Tom Copeland will tell you it is also considered furniture and only so much can be a deducted and not depreciated.

[TomCopeland]

Piano

A friend is selling me a piano for $150. Can I deduct the full cost in one year, or do I have to depreciate?

You can deduct at least part of the cost of the piano only if you use it in your business (you playing it for the children, or the children playing it or both). Assuming that is the case, multiply the business use % by $150 and deduct it in one year. Starting last year, you don't have to depreciate any item costing $200 or less.