Form 3115 and Household Inventory

[zorrambo]

I completed a household inventory a year and a half after starting my business and want to depreciate them. I was wondering if anyone can how I should describe the list of items on the Attachment to Form 3115 in answer to the 12a question on Form 3115? Do I need to list the items separately or clump them all together? How do I deal with the items being purchased in different years? For example, I bought my dishes prior to 7 years ago but I bought my couch only three years ago? (Question 25 on Form 3115)

Thank you

[TomCopeland]

depreciation

I completed a household inventory a year and a half after starting my business and want to depreciate them. I was wondering if anyone can how I should describe the list of items on the Attachment to Form 3115 in answer to the 12a question on Form 3115? Do I need to list the items separately or clump them all together? How do I deal with the items being purchased in different years? For example, I bought my dishes prior to 7 years ago but I bought my couch only three years ago? (Question 25 on Form 3115)

Thank you

You should attach a list of all the items you are depreciating, showing how you calculated how much depreciation were entitled to claim since your business began. It doesn't matter when you bought the items. What matters is what was their value at the time you started using them in your business. My book Family Child Care Tax Workbook and Organizer has a chapter describing in detail how to fill out Form 3115.

[zorrambo]

Thank you very much. The chapter on 3115 was very helpful. The example described in the book used just a washer and dryer so I didn't know how to deal with a house full of items.

[zorrambo]

Is a list like this acceptable?

Cost Year First Used in Business Cost or Fair Market Value When First Used in Business

Chalkboard 5 2012 Aug-13 2
Children's dress-up clothes 150 2012 Aug-13 20
Bissell Little Green wet vacuum 78 2010 Aug-13 25
Toy Kitchen 150 2011 Aug-13 50
IKEA leather couch 800 2010 Aug-13 200
Shoe cubby 40 2013 Aug-13 20
Book shelf 100 2012 Aug-13 20
Doll house 100 2004 Aug-13 10
Game cabinet 40 2005 Aug-13 10
Dresser 200 2012 Aug-13 50

What about asset classes? I noticed they were on the sample in the book? Do I need to sort my list by asset class or year?

Thank you

[NeedaVaca]

What about all of your appliances? Do you use those for daycare? Refrigerator, stove, microwave, dishwasher, washer, dryer?

[TomCopeland]

Form 3115

Is a list like this acceptable?

Cost Year First Used in Business Cost or Fair Market Value When First Used in Business

Chalkboard 5 2012 Aug-13 2
Children's dress-up clothes 150 2012 Aug-13 20
Bissell Little Green wet vacuum 78 2010 Aug-13 25
Toy Kitchen 150 2011 Aug-13 50
IKEA leather couch 800 2010 Aug-13 200
Shoe cubby 40 2013 Aug-13 20
Book shelf 100 2012 Aug-13 20
Doll house 100 2004 Aug-13 10
Game cabinet 40 2005 Aug-13 10
Dresser 200 2012 Aug-13 50

What about asset classes? I noticed they were on the sample in the book? Do I need to sort my list by asset class or year?

Thank you

Yes, this is good. The asset class for all of this stuff is 00.11. It doesn't matter how you list these items.

[zorrambo]

Yes, this is good. The asset class for all of this stuff is 00.11. It doesn't matter how you list these items.

Thank you so much

[zorrambo]

What about all of your appliances? Do you use those for daycare? Refrigerator, stove, microwave, dishwasher, washer, dryer?

Actually, since the house is a rental, I don't actually own the appliances. Too bad.