Backyard

[radhas]

I just applied for license . We just moved to our New house and planning to finish the back yard. I wanted to do the backyard with deck and swing set and some playing area for the children. I think it will cost $40000 and the landscape company is giving us a loan. My question is can I add this to tax 2011?

Thank You

[Michael]

Welcome to the Daycare.com forum!

Since you are a now a registered member I suggest you take advantage of Tom Copeland's Tax webinar titled “How to Reduce Your Taxes for 2010 and 2011” on Monday, February 28th. For more information see our article: https://www.daycare.com/news/taxes/t...d-webinar.html

[radhas]

Thank You, I will take a look at it .

[TomCopeland]

Backyard

I just applied for license . We just moved to our New house and planning to finish the back yard. I wanted to do the backyard with deck and swing set and some playing area for the children. I think it will cost $40000 and the landscape company is giving us a loan. My question is can I add this to tax 2011?

Thank You

As a general rule you can deduct expenses that are ordinary and necessary for your business. You would depreciate the deck over 39 years because it's attached to the home and is considered a home improvement. You can deduct the swing set. If it's permanently attached to the land you can depreciate it over 15 years as a land improvement. If it's not, you can depreciate it over 7 years. General landscaping (grading of land, etc.) is usually not deductible unless it's close to the home (and would be destroyed if the home was moved) and then it would be depreciated over 39 years. You can also deduct the business portion of any interest payments on the loan. Ask the company to break out the costs of the various things they are doing.


Join me for my webinar on February 28th "How to Reduce Your Taxes for 2010 and 2011". I guarantee that you will save more in taxes than the cost of the webinar ($25). For more info: https://www.daycare.com/news/taxes/t...d-webinar.html

[radhas]

Thank You Tom. I will register for your webinar.


Radha