Toy Depreciation?

[midaycare]

Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.

[TomCopeland]

Toys

Do I have to depreciate expensive toys? I bought a few expensive things with grant money this year. $2000, $500, $1500, etc. Do I need to list these as a 5 year depreciation?

Also... does KidKare keep track of depreciation for accounting purposes? Minute Menu did not do this, if I remember correctly. It listed things, but I don't think it kept track of it.

New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.

[Mom2Two]

Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?

[MarinaVanessa]

New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.

WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine ::::::

[TomCopeland]

$2,500 rule

Is the $2500 limit just for daycare or other small businesses also? Does it matter what type of item it is, for example, riding mower for a lawn business?

This rule is for all businesses.

[TomCopeland]

$2,500 rule

WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine ::::::

Yes, completely deductible in one year. Same with the $400 machine. Go crazy.

[midaycare]

New IRS rules say that you don't have to depreciate any individual item that costs less than $2,500!

KidKare works the same way as Minute Menu with regards to depreciation. That is, it only lists items to be depreciated on the Depreciation Worksheet report.

That is amazing!!!!! Thanks Tom!

[daycarediva]

WHAT?! So the Cricut cutting machine that I use to cut-out shapes and such for my daycare activities (that I bought in February for $250) is COMPLETELY deductible without having to depreciate it??
IF this is true I'm going to buy the newer $400 machine ::::::

YES! I deducted mine last year. AND all of the cartridges.