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Where to put depreciation

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    #1

    Where to put depreciation

    Customer has an in-home child daycare business.
    She has been depreciating the business use portion (about 33%) of her home on form 8829.
    In 2020 she bought (for $ 900) a plastic-type shed to store children's backyard toys etc -100% business use.
    Does the depreciation for this get entered on her daycare "C" or should it be added to home depreciation on the 8829 ?
    Would section 179 be available for this asset ?
    Also, what number of years would such a structure be depreciated if applicable ? 15, 20, 39.5 ?
    Thanks for comments.
    Tags: None
    #2
    Schedule C.
    Yes, to ยง179, but Bonus may be better.
    I use 5 years for daycare providers.

    Comment

      #3
      This is not considered Real property. You could Sec. 179 or bonus depreciation. Depreciation goes on Schedule C

      Comment

        #4
        Originally posted by DMICPA View Post
        This is not considered Real property.
        That would depend on whether or not it is permanently attached to a foundation. With plastic sheds, it could go either way. It seems silly to me to have a plastic shed that could blow over in a strong windstorm.

        "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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          #5
          I don't think I have any client with a plastic tool shed but I got a few with Wood or steel tool/storage sheds that are permanently attached to the ground or structure. If it is added after the main building has started depreciation I add it as another structure with same depreciation schedule as the main structure (39 or 27.5 for rentals).
          Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

          Comment

            #6
            Why not just take it as an expense. it's under the $2500 threshold?

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