New Kitchen Appliances And Couch Set

[Saffren]

I purchased all new kitchen appliances, Stove,dishwasher, refrigerator, microwave and also a new couch set for my daycare area. All these items were around $1,000 each per item, I was reading if an item is under $2,500 we do not have to do depreciation on the item and can take the full deduction in this tax year. Do I just enter this in my supply section on the schedule C? Or do I still fill out the depreciation work sheets? I am not sure on the Schedule C to place this.

[Michael]

Here are a couple of other threads on deductions and appliances: https://www.daycare.com/forum/tags.p...n+-+appliances

[TomCopeland]

$2,500 rule

I purchased all new kitchen appliances, Stove,dishwasher, refrigerator, microwave and also a new couch set for my daycare area. All these items were around $1,000 each per item, I was reading if an item is under $2,500 we do not have to do depreciation on the item and can take the full deduction in this tax year. Do I just enter this in my supply section on the schedule C? Or do I still fill out the depreciation work sheets? I am not sure on the Schedule C to place this.

Yes, you can deduct your time-space% of the cost of each item in one year, with no depreciation. Enter it on Schedule C, line 27a Other Expenses. Call it Furniture or Equipment.

[Saffren]

Yes, you can deduct your time-space% of the cost of each item in one year, with no depreciation. Enter it on Schedule C, line 27a Other Expenses. Call it Furniture or Equipment.

Thank you Tom, you answered my question, your reply was exactly what I needed to know. I was not sure after figuring the T/S cost deductions on the items where on the schedule C was the proper line to place the items!