Originally Posted by FingerprintsHappen:
Psst-I'm going to let you in on a little secret that some here will maybe flame me on (flame suit zipped up tight) IN HOME DAYCARES PAY LITTLE TO NO TAXES.
Chickenhauler, I beg to differ. My husband claims 0 on his deductions AND pays an extra $100 /mo, PLUS we paid $3500 in April, all in taxes on my income. we are paying at a higher rate than if I was employed because self-employment taxes are higher than other rates. yes, I can write off part of my utilities, part of my mortgage interest, etc, but even with those and all the actual 100% business expenses (like infant toys- my youngest child is 14) I still paid an arm and a leg in tax this year
SOME OF US do things honestly
I do things honestly-my CPA knows the law, she's an expert at tax law. We have survived two audits in ten years, and no violations found. NOT A SINGLE ONE.
If you made some big bucks, then kudos to you.
But I'm betting you overpaid in taxes. I know all about self-employment taxes, I own my own business, along with the wife operating a daycare-we have no witholding in our household, since all income is derived from being self employed. With NO witholding, and gross sales rcpts exceeding 100k last year, we paid less in taxes than you, and it was all legit and honest.
You can automatically deduct ALL of your mortgage interest automatically, DC or not.
Originally Posted by mac60:
I have 2 dogs, and I do NOT write off my pet expenses and never have. I do take mileage, my husband mows the lawn, I clear the snow, we have not bought new furniture since I have been doing dc or new carpets. I do have a CPA that does my taxes, and I DON"T make big bucks. Hell, I only get $85 per child for a fulltime kid here, well I should say $80, $85 is my new rate coming up.
Your CPA has failed you greatly. Pets, snowblowers, lawnmowers, weedwhackers, even a snow shovel and salt/sand for the sidewalk, upkeep of those items and their fuel are all tax deductible since you are running a business out of your home.
Pets are a teaching aid-you can use them to teach children how to interact nicely with animals.
There is sooooo much tax code, deductions, exemptions, etc that are overlooked it's not even funny.