« 2012 Redleaf Calendar-Keeper on Sale Now | Main | How to Be Prepared for an Investigation »



Feed You can follow this conversation by subscribing to the comment feed for this post.

Amber Barker

So if I understood this right. I started opening my business in March of 2011 Actual first day with children was June 1st 2011. I can go through my house and just use an estimate and I will not need receipts? Do I need to document by taking pictures of the items or just the inventory list? Thank You!

Tom Copeland

Yes, take an inventory and estimate the value of your household items as of June 1, 2011. If you have receipts, save them. Otherwise take pictures of the items.


So I think I understand everything except valuation. So I started daycare in 2011, my wife has a laptop that she purchased in 2009, starting in 2011 we used the laptop for business. So I can depreciate the laptop on 2011 taxes even though I did not purchase it in 2011. Right?
Okay, so what do I put for value? I have a receipt showing full purchase price in 2009, or do I use an estimated value of it in 2011?

Tom Copeland

Yes, you start depreciating the laptop in 2011 based on what it was worth in 2011 when you started using it in your business. Estimate what a stranger would pay you for the computer in 2011. It's a guess. It's probably not worth more than half of what you paid for it.

Beth Lumino

I just read this article, I did not do this when I first started my daycare a couple years ago can I do it now?

Tom Copeland

Yes! Use IRS Form 3115 to claim depreciation deductions you were entitled to claim before 2012. See my article: http://www.tomcopelandblog.com/2011/09/how-experienced-providers-an-uncover-hidden-deductions-.html

Sandra Weber

we use our house for daycare and added another bedroom and a dining room on. Both these rooms are used for daycare just like the rest of the house. Can we use the cost of the addition for a deduction.


Yes. This is a home improvement that you must depreciate over 39 years after applying your time-space %.

Farinaz Firoozi

Do I add up all value prices of all of our household items we owned & place the total price under household items for getting depreciated? or I have to mention them one by one individually??

Teri R.

I am in the process of purchasing a home before year end 2014; my small business was started in 2010; I have been using a public storage facility for my equipment (cleaning supplies, vacuum cleaners, rug shampooers, etc.) And a room in my apartment to do the paperwork i.e., invoices, accounts payables, etc. Will I be able to use 179 deductions for this for 2014? I will be storing cleaning items in the garage and will have a separate room as my office; how about the new appliances?

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)

Top Blog

  • Direct Capital Top Money Management Blog


  • Email Subscription

    Enter your email address:

    Delivered by FeedBurner


Become a Fan