Daycare.com ForumDaycare Insurance Daycare Insurance LIST YOUR DAYCARE!

FIND A DAYCARE!

Facebook


Go Back   Daycare.com Forum > Daycare and Taxes

Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

Reply
 
Thread Tools Display Modes
  #1  
Old 01-14-2011, 07:32 AM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default Christmas Decorations? Write off?

LOL Just wondering, since I am going through all my reciepts!
Reply With Quote
  #2  
Old 01-14-2011, 01:36 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,886
Default Christmas decorations

Are Christmas decorations deductible?

It depends. You can deduct all expenses that are "ordinary and necessary" in your business.

I'll give two examples:

Provider A spends $200 on Christmas decorations. She involved her day care children in putting them up. She celebrates Christmas with the children by reading stories, singing songs, exchanging gifts, and generally incorporating Christmas into the learning curriculum of the children in her care. The cost would be deductible.

Provider B spends $200 on Christmas decorations. She doesn't involve the children in this expense. She doesn't incorporate it into her curriculum. The cost would not be deductible.

It's up to you to decide which provider you are. If you are provider A you need to keep some records to show what you did to incorporate Christmas into your curridulum.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #3  
Old 01-14-2011, 04:14 PM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Hmmm. Interesting..I was thinking about retail stores or business and how they all must purchase Christmas decorations to dress up their "businesses" for the holidays, and since I would assume they are able to write them off as a business expense, I thought maybe I could too, since I dressed up my business for Christmas.
Reply With Quote
  #4  
Old 01-14-2011, 04:17 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,886
Default Christmas decorations

Family child care providers are different than other businesses in that their business is in your home. Of course, other storefront businesses can deduct Christmas decorations without question. You need to be able to show that Christmas decorations are used in your business. If you can do so, deduct a portion of their cost (time-space %).
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #5  
Old 01-14-2011, 05:44 PM
My4SunshineGirlsNY's Avatar
My4SunshineGirlsNY My4SunshineGirlsNY is offline
Advanced Daycare.com Member
 
Join Date: Oct 2009
Location: New York
Posts: 573
Default

Quote:
Originally Posted by TomCopeland View Post
You need to be able to show that Christmas decorations are used in your business. If you can do so, deduct a portion of their cost (time-space %).
So we need to show photos of any Holiday decorations in our house that we purchase? And do those photos need to show the daycare kids? Just curious how this works incase of an audit. I claim my holiday decorations as TSP as I was told I could in a start-up business class I took when I started my business. They didn't mention anything about proving it or how to prove it.
Reply With Quote
  #6  
Old 01-14-2011, 07:28 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 1,886
Default Christmas decorations

In an IRS audit the auditor might argue that you didn't use these decorations in your business. You would have to show why that's not true. To do this, take pictures of the decorations and write a note explaining how you used them in your business. How were the children involved in putting them up, or how you used them as part of various activities. Or how you shared stories and information with the children about Christmas.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #7  
Old 01-15-2011, 07:51 AM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Ok, that makes sense now Well considering that my dck's were little and didnt put t hem up, I can't claim mine...darn..
Reply With Quote
Reply

Tags
christmas, christmas decorations, deductible, tom copeland

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Who Gets Paid Christmas Week Off? Sprouts Daycare Center and Family Home Forum 18 07-18-2012 02:02 PM
Are Christmas Gifts To DCK & DCM's Writeoffs? legomom922 Daycare and Taxes 8 12-30-2010 08:56 AM
Christmas Activity mainemomma Daycare Center and Family Home Forum 1 12-18-2010 06:20 PM
Christmas Schedule Change....WWYD??? Unregistered Daycare Center and Family Home Forum 8 12-03-2010 12:20 PM
Christmas & Holiday Pay Unregistered Daycare Center and Family Home Forum 8 09-23-2010 11:57 AM


All times are GMT -7. The time now is 03:05 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming