My CPA says NO, what do you Say?

[daycare]

When I moved to my new house I bought a Gazebo for $3600.00 to put out on my patio. I also bought 3 kid size lunch benches to put under it so the kids would have a place to eat year round.

We never use it for personal matters, in fact the picnic tables are bolted down to the ground.

My cpa says it's T/S, but it was purchased 100% for DC. There is no way the DCKS could eat inside my house, it's too small.

so what do you say?

[Blackcat31]

I say that the IRS would probably say it's "Real" property (meaning fastened to the property) therefore you cannot claim it 100% but in all honesty I have NO idea because taxes and all that stuff are something I am completely unfamiliar with.

I'd ask Tom to be totally sure and would go with what he says.

[Jewels]

To me it seems like it would be 100 daycare, but do you have kids of your own? If so I could see the argument that your kids at some point sit at those tables while outside?

[daycare]

To me it seems like it would be 100 daycare, but do you have kids of your own? If so I could see the argument that your kids at some point sit at those tables while outside?

It is not fixed to the ground. It will be removed when we move. We are only renting this house.

Yes I have one child that could possibly sit at there child size tables, but not 3 at once....

[TomCopeland]

Gazebo

When I moved to my new house I bought a Gazebo for $3600.00 to put out on my patio. I also bought 3 kid size lunch benches to put under it so the kids would have a place to eat year round.

We never use it for personal matters, in fact the picnic tables are bolted down to the ground.

My cpa says it's T/S, but it was purchased 100% for DC. There is no way the DCKS could eat inside my house, it's too small.

so what do you say?

Since you never use it for personal purposes, deduct 100% of the cost. The IRS may question this, but if it truly is 100%, deduct 100%. If the Gazebo is permanently attached to the ground, treat it as a land improvement, apply the 50% bonus depreciation rule, and depreciate the rest over 15 years. If it's not permanently attached, use the Section 179 rule and deduct it all in one year.

[daycare]

Thanks Tom... I guess worst case, is I get audit again. I have all my receipts and pictures of it, it is only kid friendly.