2007-08-09 04:17:29 · 5 answers · asked by stacy h 2 in Business & Finance ➔ Taxes ➔ United States
If the yard that you are fencing in is used for the day care part then you could write off the cost of the fence, but nothing of the yard itself. Land is not depreciable.
2007-08-09 04:38:26 · answer #1 · answered by Anonymous · 1⤊ 1⤋
The rules are different for daycare than other home businesses. First you should determine what portion of the home and yard the kids routinely use. Next determine what portion of time (of the entire year) that the kids are routinely in your home. Now you have a factor by which you can deduct the fence. If that were 50% of a $10,000 improvement you would expense $5,000 to the daycare business and adjust the basis of the property by $5,000. I am not aware of any published formula that has been preapproved by the IRS but this one make sense and is justifiable if you are audited.
2007-08-09 04:55:51 · answer #2 · answered by ? 6 · 0⤊ 0⤋
A percentage of it should be deductible based on the total hours of the year that your home was used as a day care. The exclusivity rule does not apply to home day cares.
2007-08-09 04:43:30 · answer #3 · answered by Wayne Z 7 · 3⤊ 0⤋
I have a home day care also and I think you can write it all off on your taxes. I have written off all home improvements including when my a/c went out and I had to get another one. If the kids in your daycare need what you do it should be written off and for them to play safely outside you need a fenced in yard.
2007-08-09 04:24:26 · answer #4 · answered by candewmom654 2 · 0⤊ 4⤋
zero, probably - to get "home office" deduction, the room/space must be used EXCLUSIVELY for the business - no personal use at all. A yard would be hard to justify to the IRS as being exclusive for business
2007-08-09 04:23:56 · answer #5 · answered by Anonymous · 1⤊ 5⤋