Useful WebSites:
April 1999
July 2000
November 2000
December 2000
January 2001
February 2001
March 2001
April 2001
May 2001
June 2001
July 2001
August 2001
September 2001
October 2001
November 2001
December 2001
January 2002
February 2002
March 2002
April 2002
May 2002
June 2002
July 2002
August 2002
September 2002
October 2002
November 2002
December 2002
January 2003
February 2003
March 2003
April 2003
May 2003
June 2003
July 2003
August 2003
September 2003
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
January 2005
February 2005
March 2005
April 2005
May 2005
June 2005
July 2005
August 2005
September 2005
October 2005
November 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007
May 2007
June 2007
July 2007
August 2007
September 2007
October 2007
November 2007
December 2007
January 2008
February 2008
March 2008
April 2008
May 2008
June 2008
July 2008
August 2008
September 2008
October 2008
November 2008
December 2008
January 2009
February 2009
March 2009
April 2009
May 2009
June 2009
July 2009
August 2009
September 2009
October 2009
November 2009
December 2009
January 2010
February 2010
March 2010
Section 179 For Child Care Business
Q:
Subject: Section 179 for SUV Valid for Child Care Business?
Hi Kerry,I've been reading your blog with great interest and have almost gotten the answer I need, specifically around section 179 deduction for a 6000lb or greater SUV in 2004.
The only open question I had was if a Child Care business qualifies for this vehicle deduction. My wife decided to start a child care business last year and we purchase an SUV so she could have a very safe vehicle for her business. After a couple of months of finding the right family, she started taking care of 3 children and has been with the family ever since. The SUV is mainly (more than 80%) used by her to travel to and from our home to the family's home, pick up the children from school and take them to various other activities. In my view, the SUV is an integral part of this business and I wondered if we can deduct the cost of the car as a Section 179 expense against the child care business.
Thank you so much for your answer.
A:
As always, anyone with a business should be working with a tax pro to legally minimize your taxes and to see how simple matters like Section 179 apply to you.
Equipment purchased for a child care business is just as eligible for the Section 179 deduction as for any other kind of business. The same restrictions apply, such as the taxable income limitation and the requirement that the item be used more than 50% for business.
This second point is one that you and your wife will need to work on with your own personal tax advisor. Specifically, the wording of your question makes me wonder where her business is located for tax purposes. If the kids are brought back to your home to be taken care of, then all miles related to that would count as business related. If, on the other hand, all of her work is done at the parents' homes, there could be a problem counting the drive back and forth from your home as business miles and not as nondeductible commuting.
Good luck. I hope this helps.
Kerry Kerstetter
Follow-Up:
Kerry,thank you very much for your answers. You answered exactly what I needed to know and also thanks for making me aware of the commuting miles.
It's really great to have your site.
Labels: 179
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 8/14/2005 06:12:00 PM Send this post:
