Just thought I would see if anyone knew if i could claim a new roof that was put on our house. If so, would it go under maintenance & repair or CCA (if so, what class?).
thank you kindly,
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Just thought I would see if anyone knew if i could claim a new roof that was put on our house. If so, would it go under maintenance & repair or CCA (if so, what class?).
thank you kindly,
That would be a capital improvement to your house so I would say no. I write off the paint and drywall repair for my foyer where the children damage the walls. I also wrote off a loan lamp when a daycare child broke it. I also write off carpet cleaning ...... Easy to guess why
We claimed our roof many years ago and put it in the maintenance section that is with business use of home. It is then prorated according to the time ratio. We were told anything that wears out and needs replacing can be claimed as compared to refinishing a basement which is an add on. I claimed our fence too when we did it. You also have to do like kind so if asphalt shingles then you can't upgrade to steel roof or if a chain link you can't upgrade to wood but can only claim the cost of replacement not upgrade. Of course you are probably getting a better product then when it was first done but as long as it is like kind.
Quote:
Originally Posted by playfelt
Thanks Playfelt, that's great advice.
so to prorate according to time ratio...do you mean that if we purchased a roof for $5000 in July, we would do the following 6/12 X 5000 = $2500 to put in the maintenance category? Thanks again
My understanding for the business use of home for childcare the equation is:
square footage of home / square footage used for business X 24 / # hours you are open X 365/#days a year you operate = % of expense you can write off.
So for example - if your home is 2400 square feet and you use 1000 of it for daycare during business hours, you are open 10 hours a day lets say with 30 minutes for prep before and after on average so 11 hours total, and you are open 240 days a year cause you take 2 weeks vacation and are closed for 10 stat holidays.
1000/2400 x 11/24 x 240/365 = 12.5 % of any shared expenses ... so $625 of your roof would be able to be written off as a 'business use of home - repair and maintenance' .
On the business use of home page where you list your utilities, etc. there is a line that says maintenance and repair - it goes there. Then that whole amount is totaled and that is what goes into the use of home equation.
Note that on the first page you also have a repair and maintenance line - the first one is for things directly for your daycare such as repairing the swingset or something broken by the daycare child like a screen in the door. The one on the use of home page is for things you do to the home to maintain it and then prorate that with the equation - the amount of space over total, number of hours, days one.