my wife baby set's for two childeren one is on the swim team the other is just learning how to swim,whitch I teach each day. I was told yu could write the Pool off through the busness.
2007-01-27 01:09:56 · 9 answers · asked by Robert W 2 in Business & Finance ➔ Taxes ➔ United States
You can only deduct your pool if it is a space that is EXCLUSIVELY used for the business. If the space has both business and personal uses, that won’t fly with the IRS and the FASTEST way to get audited. IRS is pretty strict with home business deductions. And I doubt if a pool is exclusively used for your business and not used by your family
To use the pool as a deduction, it has to pass the following test by the IRS
- Exclusive Use = "You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes."
- Regular Use
- Trade or Business Use
- Principal Place of Business
- Place To Meet Patients, Clients, or Customers
- Separate Structure
Read and re-read Publication 587 (2005), Business Use of Your Home (Including Use by Daycare Providers) to help you understand what you can and cannot deduct from your home business http://www.irs.gov/publications/p587/index.html
2007-01-27 01:39:40 · answer #1 · answered by imisidro 7 · 1⤊ 0⤋
This is an in-ground pool outside of your home. Is there separate income derived from the swimming lessons?
If so, then if depreciation were allowed on the cost of the pool as a separate business use asset, it would be minimal. The percentage of business use would be very small (let's say 5%), and the depreciation schedule would be very long (39 years). It is not a practical idea, and easily challenged by the IRS because it could be argued that the pool is part of your home.
In addition, it would be silly for your wife to pay you for swimming instruction from her babysitting fees, since there would be no tax benefit to you on your joint return.
If your wife has any out of pocket expenses related to the children using the pool, she may be able to deduct those expenses from her babysitting income.
If your spouse is filing a Schedule C return and taking the Business Use of Home deduction, depreciating the home per the day care rules, then I believe the cost of the pool would be added to the home itself and depreciated accordingly. You would depreciate the entire property subject to the limitations for day care provider.
2007-01-27 13:31:20 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Well, if the pool is considered business equipment, you first have to determine usage percentage between personal and business and then you could depreciate the business percent over the lifetime of the asset. Your business should be swim teacher. A babysitter doesn't need a pool to conduct her business.
2007-01-27 01:14:52 · answer #3 · answered by themainsail 5 · 1⤊ 0⤋
Consult a Tax Specialist,but it does sound quite reasonable as a Part-Expense!
2007-01-27 01:13:14 · answer #4 · answered by J. Charles 6 · 0⤊ 0⤋
Probably not, but consult with a tax pro -- CPA or tax attorney, not Block or Hewitt -- who will be able to advise you based on an analysis of your particular situation.
2007-01-27 03:04:06 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 0⤋
if she is a licensed day care she can.i would call a tax specialist to be sure. when i had my day care i was licensed and claimed everything the children used i put on a room to the house and claimed that also. im in NY.
2007-01-27 01:17:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You'd need to talk with a CPA or tax specialist, but I'm thinking no. It'd be a good way to get yourself audited, and no one wants that.
2007-01-27 01:13:33 · answer #7 · answered by Zyrilia 4 · 1⤊ 0⤋
Yes, if you are getting an income from it and you file jointly you can get a credit.
2007-01-27 01:14:04 · answer #8 · answered by Anonymous · 0⤊ 0⤋
yeah, anything business related, especially if its a loss
2007-01-27 01:13:32 · answer #9 · answered by kurticus1024 7 · 0⤊ 0⤋