The End of the "$100 Rule"

Family child care providers can now deduct in one year items they use in their business that cost less than $2,500.This rule applies to your 2015 tax return and beyond.

For many years it used to be that you had to depreciate items that lasted longer than one year and cost more than $100.

This $100 rule was not an official IRS rule, but rather a rough rule-of-thumb that the IRS abided by.

The new "$2,500 rule" will allow providers to avoid the complicated depreciation rules for many more items they are purchasing for their business. Include any sales tax in the cost of an item to determine if it's eligible for this rule.

Thanks to Bill Porter.

Tom Copeland - www.tomcopelandblog.com

Image credit:https://www.flickr.com/photos/9731367@N02/7643873724