New Business Deductions

[Unregistered]

I am opening my new in home facility on January 5th. I have been buying daycare equipment the last few months (tables, chairs, toys, art supplies, etc) that will all be daycare use only. Since I won't be open until the new year, I can't claim these expenses on this years taxes, is that correct? Can I claim them on next years? Do I just save all of these receipts for use next year? We also put up a fence, if I can't claim this until next years taxes, do I claim one year or two years of depreciation? Thank you!

[TomCopeland]

start up expenses

I am opening my new in home facility on January 5th. I have been buying daycare equipment the last few months (tables, chairs, toys, art supplies, etc) that will all be daycare use only. Since I won't be open until the new year, I can't claim these expenses on this years taxes, is that correct? Can I claim them on next years? Do I just save all of these receipts for use next year? We also put up a fence, if I can't claim this until next years taxes, do I claim one year or two years of depreciation? Thank you!

Since you won't be in business by the end of 2014, you must claim your 2014 expenses on your 2015 tax return. Save your receipts for next year. Start claiming depreciation on your fence in 2015 as year one (of 15).

See my article: http://www.tomcopelandblog.com/2013/...-provider.html