It also contains tips to share with your tax preparer about the unique rules of your business. The Brochure describes each family child care business book published by Redleaf Press. Your Property Providers are entitled to claim depreciation deductions on the furniture and appliances they owned before they went into business. To claim this depreciation, you need to know the fair market value of these items at the time your business began. This fair market value is an estimate based on what a stranger would pay you for the item.
Some providers use thrifty want ad prices or used furniture store prices.
There is a publication that can help you estimate the value of your household items. It lists values for more than 800 items of clothing and household goods. The values are obtained from annual surveys of consignment and thrift stores and conform to IRS guidelines. Although this publication focuses primarily on clothing, it does list some household furniture that providers can use. You can also use the publication to value clothing donated to charities.