Corrections to the 2015 Family Child Care Tax Workbook and Organizer

Unfortunately, a tight printing deadline did not enable me to make a careful copyediting of two areas:

Chapter 10 Recovering Your Unclaimed Depreciation

In December 2015 the IRS issued a new version of Form 3315. Here’s the new directions to how to fill it out.

Page 191 – Delete everything on this page and replace it with the following:

Line 1 – 107

Line 2 – no

Line 3 – yes

Line 4 – no

Line 5 – no

Line 6a – no, go to 7a

Line 7a – yes

Line 7b – check box “not under exam”

Line 8a – no

Line 8b – no

Line 8c – leave blank

Line 8d – no

Line 9 – leave blank

Line 10 – no

Line 11a – no

Line 11b – leave blank

Line 11c – leave blank

Line 12 – no

Line 13 – no

Line 14 – 16a – use the same description for the old form lines 12-13

Line 17 – yes

Line 18 – no

Line 19a – no

Line 20 – no

Line 23 – no

Line 24a – leave blank

Line 25 – no

Line 26 – enter amount of recaptured depreciation

Line 27 – yes

Line 28 – no

Leave the rest of page 4-8 blank

Page 191

Replace line “25” in the first sentence with line “26”

 

Appendix A Sample Tax Return. Here are the corrections:

Page 229

Lines 1-7: The Time-Space Percentage should read “39%.” It is correct on Form 8829.

Lines 10-14: Again, the Time-Space Percentage should read 39%, not 35%.

Page 230

Under the Personal Property heading the example for Furniture/appliances should show a Time-Space Percentage of 39%, not 35%, and the business portion should read $1,254 and the depreciation amount should be $157 ($1,254 x 12.49%). This is not reflected on the Form 8829 example.

Page 231

Under the Home Improvement example at the top of the page we depreciated paneling over 39 years. However, under the new IRS regulations regarding repairs, this should be deducted in one year as a repair.

Under the Land Improvement section, the depreciation percentage should read 5%, not 8.55%. Therefore, the correct deduction should be ($630 x 5% = $32). This change is not reflected on the Form 8829 example.

Under the Home Depreciation section the Time-Space % should read 39%, not 35%. This is not reflected on the Form 8829 example. The correct depreciation is ($143,000 x 39% x 2.564% = $1,430).

 

I apologize for these errors.