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We are going to be purchasing one of those big wooden playgrounds (roughly 1,000$) but it is not just for the daycare. It is for our kids too and we would be buying it regardless of if I had daycare kids here or not. But that being said, the daycare kids will def be using it too and it is a selling point to new families. So, first question, can I claim this? Second question, will it raise any sort of "red flag" on my taxes? My expenses generally run 2-300$ a month. With this, it would be 1-2300$ for the month, exceeding income and far more then I've ever claimed.
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Yes, I believe you can use your TS% for this expense, but you have to depreciate any expense over $500 over several years. So you won't be able to claim all $1000 for next year. -
Kendallina is exactly right. T/s %, depreciate, and buy everything Tom Copeland wrote. He's awesome and his books are written in plain English, not accounting jargon.Comment
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playground
You can deduct the playground and it won't raise a red flag with the IRS. If you use it more than 50% of the time in your business you can deduct the business portion in one year, using the Section 179 rule. If you use it less than 50% of the time in your business, depreciate it over 15 years.
You can track the actual business use over a month or two to determine the business use percent. See my article on this: http://www.tomcopelandblog.com/2012/...e-percent.htmlComment
I'm def not as strong on the business side of things as I'd like to be yet!
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