Tom - 2 Quick Questions

[JenNJ]

I had a large unfinsished room in my home (25 x 15). During the summer and fall of 2010, my husband and I finished this room and made it into a dedicated daycare space. It has a small attached bath (also new) used only for the daycare kids and a large closet/pantry used to store all my daycare supplies and food. Am I able to claim 100% of the costs associated with building this room because it is used solely for daycare?

#2 - I purchased a swingset last spring for my daycare and my own kids to use. Can I count this cost as a write off? If so, what percentage?

Thanks!

[TomCopeland]

2 Questions

Yes, you can claim 100% of the costs of finishing this room that is used exclusively for your business. As a home improvement you must depreciate the cost over 39 years.

[JenNJ]

Thank you so much!