Tax Deductible Renovations
April 6th, 2009
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Question: Tax Question: Renovations Made To My Yard For Day Care…Is it Tax Deductible?
Here is the break down:
Yard Renovations for Day Care:
$2587.50-Labor
$972.00-Top Soil
$324.00-Grass
$564.73-Playground
$152.81-Playground 2
$349.73-Sand/Fill
_______________
$4,950.77
We had to have a yard big enough to accommodate enough space for 8 children and have something for them to do while outside as outdoor activity is mandatory everyday. The yard also has to be free of hazards like holes, which we had a lot of! We had a small rough yard with no structured activity for the children so we had to fill in the yard, get top soil, grass and build a playground. Does this qualify as a tax deduction?
Answer: Playgrounds, labor, sand for play qualify but the grass & topsoil debatable. They are not going to be a typical Sch C expense. You need to use 4562 for depreciation. These are capital expenses you expect to last greater than 1 year. Landscaping is 15 year recovery period in depreciation. The playgrounds would be 7 year property.
Call the IRS and ask about the details on the landscaping before you deduct 1 800 829 1040
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