I bought a couch ($700) this year and run an in-home daycare. It was used for both personal and business. Do I enter the full $700 in the miscellaneous expenses?

[WillK · Accepted solution]

No. Since the couch was used as both personal and business you need to figure out the percentage it was used for business and then you can expense that amount on the business portion of the return.

For example the couch as purchased for $700 and it was used 60% of the time for business so $700x60%= $420 expense for the business. 

[highmstone]

Thanks Will! I was just curious if Turbotax automatically took the appropriate percentage based on my space time percentage, but I guess that's not the case.

[SweetieJean]

Example:
If your day care is open 10 hours a day, 5 days a week. That's 50 hours. There are 168 hours in a week (7x24), so 50 divided by 168 = 30%.  But that assumes you don't (for example) close the day care a week after you buy the couch.