Tweet
My daughter actually started doing daycare in her home Nov 2009. She only had one child she was caring for. For her 2009 taxes she did claim the income but didn't claim any expenses, depreciation, startup, nothing, because she didn't make that much and she wasn't really calling it a business. Now in 2010, since she's more involved in the business, she wants to take the deductions for it. She is considered exempt by the state's rules, so no licensing required at this point. My question.. So now on her 2010 taxes do we start the depreciation, expenses as of 2010? The whole inventory thing seems daunting to have to do!
-
-
Start up
You start claiming expenses in the year you are first entitled to take them. So, since 2009 was her first year in business, 2010 is her second year. Unless you amend the 2009 tax return, you lose the first year of depreciation for items you didn't depreciate. It's not a requirement that you the inventory, but it can save you a lot in taxes. You can just depreciate the larger items if you don't want to spend tons of time.
Comment