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Filing daycare taxes can be a daunting process, especially for a new daycare business owner. So we enlisted the help of Tom Copeland, tax and child care business specialist, to answer tough tax questions and provide helpful daycare tax tips.

Question: I just started and this past year I was finally able to write myself a check. I was able to benefit from a grant to purchase equipment. What are those two entries supposed to look like?

Tom Copeland: Ignore the check you wrote to yourself. That is called a “draw” but you don’t put the amount anywhere on your tax forms. Report the grant as income on Schedule C. Then report the equipment as a business expense, using the normal rules of claiming expenses.

Question: We usually do Turbo Tax for home business. It will ask if we want to depreciate our home. What does this mean and would they recommend it??

Tom Copeland: You always, always want to depreciate your home! It represents a substantial deduction that will reduce your taxes. When you sell your home you must pay some tax on the depreciation you claimed. However, if you don’t claim the depreciation, you will still have to pay tax on the amount you were entitled to claim. Therefore, you are always better off claiming the depreciation.

Question: I started my family home daycare in Sept 11 as a sole proprietor. I usually prepare my own taxes, married, file separate and itemize. I had an employee for a month. How would I file now (status, use what forms and such)?

Tom Copeland: You should continue to operate as a sole proprietor, even when you have an employee. In general, most providers are better off if they file jointly, but you can check to see which method is better for you.

Question: Should my husband and I file separately because I will have to file business taxes?
Tom Copeland: No. Fill out your business tax forms and enter your profit from Schedule C onto your joint Form 1040. You will almost always come out better filing jointly.

Question: I get worried each year that I always take a loss- How many years can you do this before the IRS says u have to make a profit? I legally use the items for daycare and spend as much as I make in the long run.

Tom Copeland: If you don’t show a profit at least 3 out of every 5 years, you are more likely to get audited. I would try to meet this goal, even if the profit is very small.

Question: I’m not licensed so I am watching one baby right now, can the mom claim me and if so how can I be sure how much will be taken from me?

Tom Copeland: The mother can claim the child care tax credit with the amount she paid you. You don’t need to be licensed for her to claim this credit. You need to report the money you earned as income on Schedule C. You will owe about 20-30% federal tax on the money you earned.

Question: What is the meal allowance breakdown for breakfast, lunch and snacks for tax prep?

Tom Copeland: The standard meal allowance rate for 2011 is $1.19 breakfast, $2.22 lunch/supper and $.66 snack. The rate for 2012 is $1.24 breakfast, $2.32 lunch/supper and $.69 snack.

Question: Any suggestions of computer programs to use in my in-home daycare to bill/invoice parents and keep track of my expenses for tax purposes?

Tom Copeland: The best record keeping program for family child care providers is Minute Menu (www.minutemenu.com). It’s an online program you can use for 30 days for free to try it out.

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Filing daycare taxes can be a daunting process, especially for a new daycare business owner. So we enlisted the help of Tom Copeland, tax and child care business specialist, to answer tough tax questions and provide helpful daycare tax tips.

Question: I have a weekday job Monday through Friday so that’s a different income. Then I have my registered home daycare on the weekends. I filed for the EIN number in October.  So do I file separate from my regular job?

Tom Copeland: Report your income from your daycare business on Schedule C. Report some of your house expenses on Form 8829 and your depreciation expenses on Form 4562. Then transfer these expenses to Schedule C where you will claim the remainder of your business expenses. Your profit from Schedule C gets transferred to Form 1040. The income from your weekday job also gets reported on the same Form 1040.

Question: I’m not licensed as a daycare; I’m merely babysitting in my home. Can I still deduct time/space percentage, etc.?

Tom Copeland: Yes. If you are exempt from your state’s child care licensing rules you can deduct the same expenses as if you were licensed. This includes you house-related expenses. If you are in violation of your state’s licensing rules, you cannot deduct house-related expenses, but you can deduct all other expenses: food, toys, supplies, mileage, etc.

Question: Is the w-10 the form we give parents with the total year payments to us providers?

Tom Copeland: You can use Form W-10 as a record of parent payments, but you will have to enter the amount the parent paid you on the top of the form, because the form itself does not leave a space for this amount. You don’t have to use the W-10. You can give the parent a receipt on any piece of paper.

Question: My home daycare is starting this year, actually any day now. But I spent money for it last year, toys, supplies…etc. Can I carry over last year’s expenses for this year’s taxes?

Tom Copeland: Yes. Expenses incurred before your business began can be deducted in the year your business begins.

Question: It is just my husband and I that live in our home and then the daycare. What percentage do I deduct from my grocery bill; I have not separated what I spent. I use the food for both although some things are used only for daycare.

Tom Copeland: You can use the standard meal allowance rule to claim food expenses. Using this method, you don’t need any food receipts. Instead, add up all the meals and snacks you served (including any you were reimbursed by the food program) and multiply by $1.19 breakfast, $2.22 lunch/supper and $.66 snack. The second way you can calculate your food expense is by saving receipts and estimating the actual amount you spent on food for the day care children. There is no specific percentage of your total food bill you can use, because every provider’s food spending habits are different. Most providers use the standard meal allowance rule because it is much simpler.

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Filing daycare taxes can be a daunting process, especially for a new daycare business owner. So we enlisted the help of Tom Copeland, tax and child care business specialist, and author of the 2010 Family Child Care Tax Workbook and Organizer, to answer those tough tax questions and provide helpful daycare tax tips.

OwnADaycare: An OwnADaycare reader asks: “I have a business credit card that I usually purchase items for daycare on, but if I put it on my personal card from time to time, if I am ever audited will that hold up if i claim it on my “business” taxes even if it’s on a “personal account” receipt?”.

Tom Copeland: You can buy things for your business from a personal or business credit card or checking account. It doesn’t matter. You are not required to keep separate credit cards or checking accounts. If you are audited the IRS will look at both your personal and business accounts.

OwnADaycare: What are the best categories for “receipt breakdown”? Business Supplies, Vehicles, Toys, Safety Supplies, Food, etc.

Tom Copeland: IRS Form Schedule C has a list of expense categories where you can report your business expenses. There is also line 27 (Other Expenses) on the back of the form with a number of blank lines where you can enter expenses in categories you choose. It doesn’t matter what you call something or what business category you put it under because it all gets added together on your tax forms. In my book Family Child Care Record Keeping Guide I list over 1,000 allowable deductions and what expense category you can put them under. I listed five expense categories under Other Expenses on Schedule C: food, toys, cleaning supplies, activity supplies, and household items.

OwnADaycare: How does a daycare business owner claim mileage (to the grocery store, etc) if he or she wasn’t so great at writing it down each time they went?

Tom Copeland: You can keep a record of business trips in many ways: save the receipt, bank deposit slip, cancelled check, credit/debit card statement, calendar notation (“park”, “school”, “library”, “grocery store”), photograph (kids in the park), field trip permission form, etc.

OwnADaycare: Can non-registered daycares still get deductions and which ones??

Tom Copeland: If a child care provider is not in violation of state child care laws she can claim all the same business expenses as a licensed provider. If a child care provider is in violation of state child care laws she can claim all the same expenses as a licensed provider, with the exception of house expenses that appear on Form 8829 (property tax, mortgage interest, utilities, house insurance, house repairs, house depreciation). So, if the state law says a provider can care for up to 3 children without a license and a provider cares for 2 children she is exempt from the law and is not violating it. She can deduct all the same expenses as if she was licensed.

OwnADaycare: Can daycare owners claim bad debts on their taxes when parents don’t pay all they owe? Is it true that they can’t claim those situations as bad debts because they never claimed the owed money as income?

Tom Copeland: Child care providers cannot deduct as a business expense the amount owed by a parent. Instead, the provider should report only the income she received. Therefore, if a parent left owing $500 the provider doesn’t report this as income. As a result, she has less income to report and will pay less in taxes.  A bad debt occurs in this situation: A parent pays a provider $500 in December 2010. The provider reports this as income on her 2010 taxes. In January 2011 the check bounces. The provider has a bad debt of $500 and can report this as a business expense in 2011. This will probably never happen.

You can keep up with family child care tax and business issues on Tom Copeland’s blog.

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Filing daycare taxes can be a daunting process, especially for a new daycare business owner. So we enlisted the help of Tom Copeland, tax and child care business specialist, and author of the 2010 Family Child Care Tax Workbook and Organizer, to answer those tough tax questions and provide helpful daycare tax tips.

OwnADaycare: What are the top 5 daycare tax filing tips you could share with daycare business owners?

Tom Copeland:

1. Claim expenses for everything associated with the cleaning, repairing and maintaining of your home.
2. Count all the meals and snacks you served the children in your care; including those that were not reimbursed by the food program. One snack per day for one child for a year is equal to a $171 deduction when using the standard meal allowance method. Meals and snacks served to children that are not reimbursed by the food program don’t have to be nutrition, so count every one.
3. Count all the hours you used your home for your business when calculating your time-space percentage. Include those hours spent on cleaning, activity preparation, meal preparation, etc. when children are not present
4. If you bought a new computer, printer, furniture, appliances, fence, play equipment, etc. in 2010 be sure you claimed the additional 50% depreciation deduction on line 14 of Form 4562
5. Count all the business miles you drove in 2010. The standard mileage rate is $.50 per mile. Include trips to the bank to deposit daycare money, trips to the library, fieldtrips, etc. Look at your calendar notations, receipts, cancelled checks, bank deposit slips, photographs, and other written records for evidence of business trips.

OwnADaycare: Should daycare business owners file their own taxes or would you recommend that they hire a tax accountant?

Tom Copeland: If you feel comfortable filling out tax forms, use my 2010 Family Child Care Tax Workbook and Organizer. There are many unique tax rules affecting family child care providers. If your tax professional is familiar with these rules then using one is reasonable. You can use my 2010 Family Child Care Tax Companion with your tax professional to help you feel confident that he or she is not making errors.

OwnADaycare: One of the most common questions about daycare business taxes on the OwnADaycare Facebook page is “Do I need to pay quarterly estimated income tax” or “ Do I file just at the end of the year”? What is the correct answer?

Tom Copeland: You must be paying in at least 90% of the taxes your family owes each quarter of the year. If you don’t there is a penalty. Most providers who are married have their spouse withhold enough to cover them and so they don’t file estimated taxes. If you are single or your spouse is also self-employed then you must file quarterly estimated taxes. If you get a tax refund you paid in too much. Also, if your total taxes are less than $1,000 you don’t have to file quarterly. It’s too late to worry about this for 2010. File your taxes and let the IRS tell you if you didn’t pay enough and determine if there is a penalty.

OwnADaycare: Is the sales tax on daycare supplies or food or other related deductible items to be included in deductions?

Tom Copeland: Yes, include any sales tax in the cost of items that you are deducting.

Keep up with family child care tax and business issues on Tom Copeland’s blog.

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Starting a daycare business is a wonderfully rewarding career. However, record keeping and filing taxes for your daycare business can be daunting and confusing. What records do you need to keep? How long do you need to keep records and receipts? In this brief guide, you will find general guidelines for record keeping and the records necessary in the event of an IRS audit. This information in no way replaces any advice you should receive from a tax accountant.

In general, daycare businesses must keep their income and expense records for as long as they are important for tax laws. This is usually the later of the following dates:

• 3 years from the return due date or the date the tax return was filed.
• 2 years after income tax was paid.

Kathleen Kansfield, CPA and Martin Freeman, CPA for home daycare businesses, advise that daycare providers keep records for the following lengths of time:

For a minimum of 7 years keep records of:

• Bank statements
• Canceled checks
• Deposit receipts
• Payment receipts
• Attendance reports
• Bills

For a minimum of 4 years, keep payroll records (if applicable)

Never throw away:

• Copies of your income tax return
• Audit reports from the IRS and any related correspondence
• Information related to home purchase and improvement

Be sure to keep careful records in these areas as these are the ones the IRS adjust most:

• Gross receipts: Bank accounts and Federal food program reimbursement records
• Food expenses and food reimbursement (remember that you cannot deduct food for your family, this is a nondeductible personal expense)
• Automobile expense ( keep an automobile mileage diary)
• Business use of the home: square footage of your entire residence and portion used for your business; daily records
• Receipts for supplies and miscellaneous expenses

Gathering Information for Your Tax Return

Start gathering your records from your daycare business on January 1^st. While this sounds early, if you have issues or questions you have plenty of time to make arrangements to get it.  If for some reason you cannot file taxes by April 15^th, you can file an extension on your tax return. File for an extensions BEFORE April 15^th and be sure to pay any taxes you think you might owe when you file the extension form.

Also, keep in mind that canceled checks are not acceptable for the IRS if you get audited. You will need to provide actual receipts.  Be sure to consult a tax accountant to answer any questions you may have and to file your tax return for your daycare business.

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One of the benefits of owning your own business is the ability to write off or deduct business expenses. As a daycare business owner you are entitled to literally hundreds of deductions that you can claim to reduce your taxes. When you own a family daycare business, you will have both direct and indirect expenses that can be deducted.

Direct Expenses
Direct expenses are those costs incurred solely for your daycare business. Direct expenses are a direct tax deduction.

Here are some of direct expenses: Food, Household and Kitchen supplies, Arts and crafts supplies, Classroom/home Decorations, Parties, Field trip Costs, Small Toys and Games, Furniture, Toys, Outside, Gifts to parents (up to $25.00 a couple), Gifts to childcare children, Children paid to work (4,550.00perchild), Computer/printer/etc., Computer Supplies, Software Internet service/web pages, Music, Cd’s, Instruments, Videos and rentals, Licensing Fees, Inspection fees, Dues and subscriptions, Educational training, Books, Materials, Legal and Accounting fees, Office Expenses, Postage/mail, Bank Charges, Home insurance, Health insurance, Co-pays, Prescriptions, Advertising, Repairs/related to childcare, Telephone, Cell Phone, Credit cards, Pet food, Vet Bills, First aid supplies, Cleaning supplies, and Legal and Professional fees

Indirect expenses:
Indirect expenses are the expenses that are shared between your business and your family. To determine the portion of your indirect expenses that  are tax deductible the “Time/Space Formula” is used.

Some examples of indirect expenses are: Legal and Accounting fees, Office Expenses, Postage and mail, Bank Charges, Home insurance, Health Insurance,, Co-pays, prescriptions, Advertising Repairs related to childcare, Telephone, Cell Phone, Credit cards, pet food, Vet Bills, First aid supplies, Cleaning supplies, Food, Household and Kitchen supplies, Arts& crafts supplies, Classroom and home decorations Small Toys and Games, Furniture, Toys (shared and outdoor), Outside equipment, Computer Supplies, Computer, printer, Software, Internet service, Web pages, Music, cd’s, instruments, Video rentals, Licensing Fees, Inspection fees, Dues & subscriptions, Educational training, and Books.

Time Space Formula
The first step is to determine the number of hours per year you have spent doing childcare. This number is divided by the number of hours in a year. This is the percentage of time you have spent providing child care during the year. Next, calculate the percentage of your home used strictly for your childcare business. Multiply this percentage by the percentage of hours you have worked during the year to obtain a final percentage. For example, if you have spent $3,000 on consumables per year you will multiply that by your final percentage to obtain the amount you can claim on the consumables you have purchased.

Of course none of these deductions are possible without keeping excellent records once you have received your daycare license.

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It is imperative to know that the federal government issues a reduction of your taxes in three different ways.

• When you have a dependent child / children, your taxes can be lessened. A dependent is any person of minor age who is living with you for more than half of the year. In addition, a dependent is one whom you give a half of your expenses to provide his or her needs.

• Families who acquire a low annual income can acquire a credited tax amounting to two thousand dollars or more.

• The different expenses that you have incurred while simultaneously working and raising a child or looking for a work while raising a child can also reduce up to one thousand one hundred forty dollars of your income tax.

To be able to get these benefits, you should be able to have the following documents and identification cards:
- Receipts (either weekly or monthly)
- Canceled checks if present
- Statement from childcare provider
- Tax ID number or social security ID number

It is important that you have all these requirements in order for you to avail of the income tax deductions.

Nutrition and Childcare
To guarantee that a child is given enough nutrition that he needs each day, the federal government has come up with menu guidelines that daycare centers are usually required following. This is because half of the necessary nutrients that the child needs are provided to him by the daycare centers. The menu guideline classifies the needed food intake by age.

Ages 1 – 3
• 1 ounce of protein (cheese, or beans, and meat or eggs)
• ¼ cup of vegetables
• ¼ cup fruits or ½ cup of fruit juice
• 1 ½ cup of milk
• 2 slices of bread

Ages 4 – 6
• 1 ½ ounce meat and/or egg
• ½ cup of vegetables
• ½ cup of fruit
• 1 ½ cup of milk
• 2 slices of bread

Ages 7 and up
• 2 ounce meat and/or egg
• 1 cup of cooked beans and/or 3 ounce cheese
• ¾ cup of fruits
• ¾ cup of vegetables
• 1 ½ cup of milk
• 2 slices of bread

Daycare centers that strictly follow these menu guidelines are able to receive subsidies from the government provided that they present the needed paperwork.

Smoking, Drug Use, Alcohol and Childcare
It is very important that the parent is guaranteed that their child is in good hands when entering a daycare center. Therefore, certain actions are regulated. Inside the premises of the childcare center, smoking is usually prohibited. Some daycare centers allow people to smoke only outside the building. As provided in the state law, drug use is also prohibited. When an employee is under the influence of alcohol or drugs, he or she is not permitted to work. If this happens, that certain employee may very well be terminated. Before enrolling your child in daycare, make sure that the premises of the childcare center are far from a harmful environment.

For more info: How to start a childcare business

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If you have your own children to take good care of and for some reason you have decided to help other parents to take care of theirs too. You have decided to run a daycare service right in the comforts of your home. There is good news with this because you can apply for a daycare tax deduction on your taxes. Maybe you are asking how you get to start claiming a daycare tax deduction. The following are a few suggestions that would help get you started.

There are requirements for you to be considered as a daycare for you to qualify for the tax deduction. You must be correctly certified or have valid exemptions because obviously if you do not have these or your license has been revoked or rejected for any reason, you are no longer qualified for this exemption and cannot legally apply for a daycare tax deduction.

There are a few factors that you need to know before calculating how much you can deduct and correctly use them in qualifying for a daycare tax exemption. Any facilities that you use in running your daycare are included in the computation and one of this is your house. However, in order to calculate this properly you need to figure out what portion you used for business and what is used for your personal living expenses. In this way, you can use a portion of the amount you paid in your general bills, such as electricity, water, telephone and other bills that may be employed in running your daycare. Just be reminded that only the amount used when running the daycare can be used to qualify for the daycare tax exemption.

Included also in the expenses that can be claimed for tax exemption are the food you have used in the meals of the children and to your employees too (if there are). In fact you can deduct 100% to your tax the expenses on meals of your employees. It may be easier to keep a standard rate for all the meals and snacks provided in your daycare. You can use up to three snacks a day, beverages and three meals, but you cannot include any non-food items used to prepare the meals. Of course this is only good for employees that food allowance is not yet included in their salary or wages. You have to have a complete and updated record on these for you to avail the tax exemption. Bear in mind that personal expenses in your personal food nor your family are not included in the computation.

Therefore, at the end, you will think running your daycare in your own house is not a bad idea after all. You will realize that you can also gain many benefits from running your daycare in the comforts of your home and this is by taking advantage of the tax deduction. In addition, with the careful calculation and a little extra work, you will be amazed because you can make the daycare tax deduction possibly work best for you.

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How do you actually start claiming a daycare tax deduction? Although you already have your children to take care of, you still decided on helping other parents and guardians out there to take care of their child or children in order for you to earn your income. Simply put, you have decided to run your own home daycare center at the comfort of your very home. Good news is, you can apply daycare tax deduction on your taxes because of your home business. Here are some suggestions that can help get you started.

One of the most important things that you need to know is that there are certain qualifications that are required in order for you to have a daycare tax deduction. In order to properly qualify you must be correctly certified or have valid exemptions. Obviously if you do not have these or your license has been revoked or rejected for any reason whatsoever, you are automatically disqualified for this exemption and cannot legally apply for a daycare tax deduction or exemption.

There are other important factors that you need to be aware of in order for you to be able to calculate how much you can correctly deduct and use when it comes to qualifying for a daycare tax exemption. Anything related to the facility, in this instance your house that you used to run the daycare could be included. However, in order to calculate this properly you need to figure out what portion you use for business and what is used for living expenses. In this way you can use a portion of the amount you pay on your general bills, such as electricity, that may be employed in running your daycare. Only the amount used when running the daycare can be used to qualify for the daycare tax exemption.

Also included in expenses that can be claimed are the food you feed the children or any or all of your employees with. In fact you can deduct 100% of the employees’ meals and use this as part of the calculation for the daycare tax deduction. Of course this is to say that their salary or wages don’t already have a food allowance included in them. There needs to be careful records in order to use these amounts for the daycare tax deduction. It may be easier to keep a standard rate for all meals and snacks provided as part of the daycare. You can use this up to three snacks a day, beverages and three meals, but you cannot include any non-food items used to prepare the meal.

In the end, running a daycare center at your own home isn’t at all bad. By taking advantage of the daycare tax deduction you actually gain far more benefits from running the daycare in your own residence. In addition, with careful calculations and a little extra work, you can make the daycare tax deduction work the best for you as it possibly can.

See: How to start a daycare business

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The cost incurred for food and supplies for a home daycare and childcare business can be deducted on the business’ taxes and most child care providers are very much aware of this fact. Some even know they can take a substantial mileage deduction. But many home daycare providers miss some large deductions that can really help trim their tax bill or increase their refund.

If you were to keep and file the receipts from last year and have added up your food costs, then you can surely calculate the cost of your consumable supplies. Consumable supplies are the items used for your business that are, well, consumed and have to be purchased over and over again. Items like toilet paper, tissues, napkins, paper towels, dish soap, laundry soap, etc. fall into this category. All of these items are either used by the children in your care or are used more frequently because you have children in your care. And all of them are partially deductible on your taxes. If you buy these supplies strictly for child care and your family doesn’t use them, then these supplies are 100% deductible. However, most of us don’t separate out our toilet paper for daycare and family use.

You therefore need to apply the time/space formula to the total amount spent on supplies within a year in order for you to find out how much you can deduct for these consumable The time/space formula calculates how much time you spent doing daycare in a year compared to the number of hours in a year, and also calculates the amount of space in your home that you use for your business.

You need to calculate the number of hours you spent doing child care in a year. Then you need to divide that number by the number of actual hours in a year (8760) to come up with a percentage of time you spent providing child care in the year. Finally, you need to calculate the percentage of your home that you use for your business and multiply this percentage times the percentage of hours worked to get a final percentage. This final percentage is then multiplied by the amount spent on consumables in a year to come up with the dollar figure of how much you can claim as a business expense on the consumables you purchased.

Here is a list of the most common consumables used, though you may come up with a lot of others depending on your situation:

Dish soap, laundry detergent, dryer sheets, all cleaning products, Ziploc bags, aluminum foil, Saran wrap, garbage bags, tissues, toilet paper, paper towels, baby wipes, hand soap, lotion, paper plates, paper cups, and air fresheners.

There are many other supplies and consumables that you probably use at home. You can come up with your own list, whatever would best reflect your current situation.

Other types and forms of deductions have something to do with supplies and services for your home that you pay for. This includes utilities, garbage services, internet service, and more. Since these services benefit both your business and your family, they once again need to have the time/space formula applied to them in order to calculate your deduction. Use the figure that you calculated from above and multiply it times the total amount paid in a year for, say, your electric bills to come up with a deductible amount. Basically, any supply or service that is used to benefit your business can be at least partially deducted.

Remember to include these items: electric bills, gas, water bills, home security system fees, cable or satellite television, internet service and garbage and/or recycling pickup. All of these services are necessary for running a child care business and are therefore deductible. Just calculate the total amount spent in a year for a service and then multiply it by your time/space formula calculation to get a total deduction. Just like what you did with the other deductibles mentioned above.

There are occasionally times when you can deduct 100% of the cost of a service. This applies when a service is used exclusively for your business. For example, if you have a phone line that is only used for your child care business, then you can deduct 100% of the fees for that phone line. Also, if your child care is run out of a separate building from your home, say a converted garage, then you can probably figure out the electricity for just that building and deduct that cost at 100%. It is, of course, advantageous to be able to increase your deductions, so take advantage of this if you can.

The tenth and final deduction that is commonly missed is a deduction for work done on or services provided for your home. For example, did you have new gutters installed? That cost will be at least partially deductible. Did you have your carpets cleaned? Again, that is a deduction. Did you have a repairman come to fix the refrigerator? Take a deduction for that! Save all receipts for any work done so you can claim the deduction. You will need to speak with your accountant about how much you can deduct for services done, because it depends on the service how the deduction is taken. Things like refrigerator repair will probably be deducted based on the time/space formula. Carpet cleaning and other cleaning services may be 100% deductible. Things like home improvements may have the time/space formula applied or they may be depreciated, depending on the cost. These can be great deductions, it is just a little more difficult to know how to calculate the total deduction on these items and should probably be done with the help of an accountant.

All the deductibles should be determined and calculated on a regular basis since failure to do so would definitely lower your chances of lessening and lowering the tax deductibles that you ought to pay. Besides, doing this is definitely your right and benefit as home owner and a small business owner altogether.

See: How to start a home daycare

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