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I run a child care at a separate house that I do not live in. I put up a fence for an outdoor play space this year. Can I subtract this as a business expense and where would I list it on the profit/loss form?
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I just keep coming up with conflicting information the more I look online. Some accountants advise it needs to be deprecated over a 15 year period other say I can claim the full amount as an expense in the year it was purchased. The total amount was $5, 595.00. -
Fence
Yes, this is a business expense. Yes, you can deduct 100% of the cost. The question is whether you must depreciate it over 15 years as a land improvement, or over 7 years as personal property. If you treat it as 7 year property you can deduct the entire amount on Form 4562, Part I. If you treat it as 15 year property, claim it on Form 4562. If you bought it in 2014 you can use the 50% bonus depreciation rule.
Which method to use. Unless the fence is moveable, I'd treat it as a land improvement.Comment
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