Looking for a great way to reduce your taxes?
In a previous article I discussed how new family child care providers can save hundreds of dollars on taxes. They can conduct an inventory of the household items they owned before their business began. These items can then be depreciated as an expense.
But,what if you’ve been in business for many years and never depreciated these household items?
It’s not too late!
You can use IRS Form 3115 to depreciate all previously unclaimed depreciation on your 2017 tax return. You can claim depreciation on this form for items you owned before you went into business as well as items purchased after you went into business. It doesn’t matter how far back your business began.
To use this form, you must meet the following tests: