Tax Question for Tom

[blessed mom]

I found out that I am exempt from needing a license in California if I am caring for one family. I am in the process of getting my license now. A friend is looking for a job and asked if I can care for her kids when she does finally get a job.

What can I write off while I am caring for her kids? Can I write off food? Craft supplies? What about the major stuff like a portion of my mortgage and all that. I am reading three of your books now, but I didn't get the tax one yet. I was thinking I have a little time til I "need" it. Can you help me with this question just so I have an idea of what kind of profit I might actually be getting until my license if official?

Thank you so much! I am not sure I'd be brave enough to do all this without your excellent books and resources!

[TomCopeland]

Since you are exempt from licensing if you only care for one family, you can deduct every in the same way as if you were licensed. This includes all house expenses on Form 8829, food, toys, depreciation on furniture and household items, everything. So save receipts for everything (except food - use the standard meal allowance rate).



Join me for my webinar February 28 on "How to Reduce Your Taxes for 2010 and 2011" sponsored by daycare.com. For more info:http://www.daycare.com/news/taxes/to...d-webinar.html

[blessed mom]

Thank you!!