Home Write-Offs

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  • Firefly
    Daycare.com Member
    • Nov 2018
    • 128

    Home Write-Offs

    If we put in a fireplace would we be able to write off the cost? Also what about finishing a basement? Would there be any tax benefit to that? Or would it just be the t/s that would change if I used part of it for daycare?
  • TomCopeland
    Business Author/Trainer
    • Jun 2010
    • 3062

    #2
    expenses

    Originally posted by Firefly
    If we put in a fireplace would we be able to write off the cost? Also what about finishing a basement? Would there be any tax benefit to that? Or would it just be the t/s that would change if I used part of it for daycare?
    If you use the fireplace in your business you could deduct time-space% of the cost. Same for the basement. If either costs are less than $2,500 you can deduct the business portion in one year. If more, then treat them as a home improvement and depreciate over 39 years.
    http://www.tomcopelandblog.com

    Comment

    • buddie65
      New Daycare.com Member
      • Mar 2015
      • 9

      #3
      water heater

      We had to put in a new water heater in 2019...the old one quit. The cost was under $2,000. I realize other appliances would use the T/ space percent in one year but was not sure if this qualified for this method as well ?

      Comment

      • Sunshine69
        New Daycare.com Member
        • Jan 2020
        • 182

        #4
        I believe it would qualify. You use your hot water heater to wash daycare pots/pans, dishes and do daycare laundry and wash the little one’s hands, don’t you?

        Comment

        • TomCopeland
          Business Author/Trainer
          • Jun 2010
          • 3062

          #5
          water heater

          Originally posted by buddie65
          We had to put in a new water heater in 2019...the old one quit. The cost was under $2,000. I realize other appliances would use the T/ space percent in one year but was not sure if this qualified for this method as well ?
          Providers can deduct the business portion of any expense in one year, without having to depreciate it. The exceptions are the purchase of a home, home improvement and home addition.
          http://www.tomcopelandblog.com

          Comment

          • Unregistered

            #6
            HVAC Deduction

            Do I have to depreciate a new ac/heat pump ($6500), or can this be expensed in one year? I’m hearing conflicting answers.

            Comment

            • TomCopeland
              Business Author/Trainer
              • Jun 2010
              • 3062

              #7
              ac/heat pump

              Originally posted by Unregistered
              Do I have to depreciate a new ac/heat pump ($6500), or can this be expensed in one year? I’m hearing conflicting answers.
              This sounds like a home improvement that should be depreciated over 39 years and it represents more than half of the cooling/heating system in your home. See my article about exceptions to this rule:http://tomcopelandblog.com/how-to-de...me-improvement
              http://www.tomcopelandblog.com

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