Daycare Depreciation Gain Tax Benefits

You may not be aware but the government has recently enacted the Economic Stimulus Act to help the ailing economy. This hopes to increase the investment of companies in their assets such as equipments and get tax benefits from it. It indicates that business owners who buy their products in 2008 will get a 50% depreciation bonus on your 2008 taxes.

This act does not exclude home daycare business. It would be a good time to start buying those equipments that you’ve always wanted for you home daycare business. Having the right equipment can greatly ease your work and provide added value for your business. Kids can require a lot of toys to keep them busy. They can have a short attention span so it would be wise to provide them with a wide assortment of toys to choose from.

Toys are not the only equipment you can purchase that are included as your business assets and equipment. There are other things that can be considered and provide you with that helpful tax savings. Be sure that when you make these purchases that you keep all your receipts for accounting to make sure that they are included in your taxes at the end of the year.

Some equipment that has been included for deduction for daycares are: playground equipment for both indoors and outdoors. Computers for internet access or child use, children’s computer for gaming and leisure purposes, educational toys and peripheral equipment, nap time necessities such as blankets, pillows, mats and rugs, etc.

The list also includes tables and chairs, laundry equipment for daycare use, daycare safety equipments, plastic serving dishes, and dishwashers, fencing for yards, storage sheds and yard care equipment. Basically everything that you will be using for your daycare business can be considered. You can talk to your accountant and learn more about the coverage of this act.

Other appliances that you are using can be tax deductable as well. As long as you are using them for your daycare it would be wise to keep a record and document the use. Records of your daily activities and use of the equipment can help in the deductions. If you use your computer for blogging and advertisement or for forum for your daycare providers, you may have the option of creating another source of income and an avenue for deductions for you home daycare service.

Be aware of all the applications of this act and it will greatly help you acquire all the equipment you need. Take advantage of the act and get those tax deductions. Now would be a good time to purchase that equipment. Be sure you do it as soon as possible sine the tax benefit is only for the year of 2008. There may be difficulty in funding the equipment that you need to buy but in the long run the benefits greatly out weigh the cost of acquiring the materials you need. So don’t take too long in deciding. The sooner you act the better.

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