MMK Depreciation Worksheet

[SilverSabre25]

err....what's it supposed to look like? The only thing to depreciate is my house. Last year was the first year I was in business. When I have MMK show me that worksheet, it doesn't look like, well, anything...I just want to make sure I'm doing it right.

[legomom922]

err....what's it supposed to look like? The only thing to depreciate is my house. Last year was the first year I was in business. When I have MMK show me that worksheet, it doesn't look like, well, anything...I just want to make sure I'm doing it right.

I have been reading alot lately on depreciation, and to my knowledge, you dont need a special sheet if you are using MMK. I too am using MMK. But you also must have a whole lot of stuff to depreciate other than just your house. Tom says everything you had before you were in business you can write off like your couch, your kitchen table, and even pic frames on your wall. Anything that makes your home look homey and inviting to parents you can depreciate. Plus your lawn mower, any tools, lamps, etc.

[SilverSabre25]

*sigh* depreciation is complicated...how much does it really gain me to bother with it?

[legomom922]

*sigh* depreciation is complicated...how much does it really gain me to bother with it?

Well it does all add up. this is what I did. I took my laptop into each room and entered everything in MMK as I looked around the room. I suprised myself when I saw how much there really was, no matter how little, all of those littles added up. The good news is you only have to do this once! You can just add/delete these to your MMk record every yr going forward. I even depreciated my stapler. LOL

[SilverSabre25]

Well it does all add up. this is what I did. I took my laptop into each room and entered everything in MMK as I looked around the room. I suprised myself when I saw how much there really was, no matter how little, all of those littles added up. The good news is you only have to do this once! You can just add/delete these to your MMk record every yr going forward. I even depreciated my stapler. LOL

So how do you figure out how much those things are all worth--things you've had since before daycare and probably don't have receipts for anymore?

Also, where on MMK do I enter that stuff anyway?

(yeah yeah, I should just get the book, I know... )

[legomom922]

So how do you figure out how much those things are all worth--things you've had since before daycare and probably don't have receipts for anymore?

Also, where on MMK do I enter that stuff anyway?

(yeah yeah, I should just get the book, I know... )

The way I did was figure out what I would be willing to pay for it if I found it on CL, or what I think someone would be willing to pay on CL. Tom said you can take pics or if you have a video camera, just video your rooms & stuff.

You enter it on the tab that says Expenses. You want to make sure you go to previous yr, then click add, then pick a catergory. I think it the catergory id listed as furniture/appliances. That part is super easy.

[TomCopeland]

Depreciation

To depreciate items purchased before your business began estimate their value at the month your business did begin. What would a stranger pay you for it? Use a thrifty store or garage sale price. It's worth doing. If the total value of your household items was $10,000 and your time-space % was 40%, the business portion would be $4,000. Depreciated over 7 years this equals about $570 a year in business deductions.