T/S or 100% for Playground Mulch?

[tn0087]

We were informed that the playset in our backyard would need to be mulched before the daycare children could play in the backyard as part of NY state's requirements for 2011. I'm not sure if this is a new requirement for 2011, but we were never informed of the necessity to do this in previous years.

As a result, I am looking at an overall cost of between $250-500 to enclose the area around the playset and fill with mulch. Since this is required by NYS law, can this be counted as a 100% deduction or must it be time/space (even though my family could play on the playset without the required mulch)?

Also, based on the price, is this a depreciation, home improvement, or standard write off?

Thanks!
Tim

[Michael]

Welcome to the forum. Here are a couple of links that might help:

https://www.daycare.com/forum/tags.php?tag=deduction+-+home+improvement

https://www.daycare.com/forum/tags.php?tag=time+space+percentage

[melskids]

i'm in NY too

it is a new requirement. i just did ours this past weekend.

i'm curious about the tax write off as well, however, my play area is fenced in and used exclusively for daycare. i was planning on using it as 100% write off for the business.

[TomCopeland]

Mulch

Since it's a state requirement you can take an assertive position and deduct 100% of the cost of the mulch. If your own children use the area after day care hours you could take a conservative position and deduct the t/s% of the cost. Don't depreciate it, claim it in one year since it's not a land improvement (it doesn't increase the value of the land) and it's not going to last for many years.