Should I Claim Depreciation if it Creates a Loss for My Business?


One of the best financial benefits of being a family child care provider is the ability to claim many expenses associated with your home.

This includes claiming depreciation deductions for the following:
•    All items purchased before you thought about going into business that are later used in your business
•    Personal property: furniture, appliances, playground equipment, computers, carpeting
•    Land improvements: fence, driveway, patio
•    Home improvements: remodeling, new roof, new furnace, house siding, replacement windows, wood/tile floors
•    House

These expenses can represent hundreds, even thousands of dollars in depreciation deductions, and claiming them can significantly reduce your taxes.

However, what happens if by claiming depreciation expenses you show a business loss on your tax return? Are there any circumstances in which you should not claim all the depreciation deductions you are entitled to?

The short answer is no.

This is the beginning of an article I’ve posted at

It explains why claiming depreciation to create or increase your loss on IRS Form Schedule C will reduce your federal and state taxable income. It also discusses why you are always better off claiming house depreciation. If claiming house depreciation creates a loss you can’t claim it this year, but you should roll it over to the next year. Failure to do so will hurt you when you sell your home. is a community for family child care providers and parents that offers a wide variety of resources including recipes, a blog, and a newsletter.  It serves as a clearing house for many online
resources (children’s activities, training opportunities, equipment, and more). was created by Minute Menu to offer free assistance that will help the family child care community grow.

Tom Copeland –

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Categories: Deductions, Depreciation and Home, Record Keeping & Taxes

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