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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.

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  #1  
Old 02-20-2011, 02:16 PM
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Default What About Before I Have My License?

In California I can take care of one family legally without being licensed. A friend is looking for work and asking me to take care of her children while I'm waiting for my license. Can I claim write offs during this time? I think I read that I cannot claim the mortgage, utilities and all that but can I claim other things like craft supplies and the like. Not sure since I'm still legal but not licensed.

Also, while I am getting my business ready...buying things that the business needs (but not yet licensed) can I write those things off? Office supplies, marketing, home improvement, computers, etc...or do I have to buy all those things after I get my license in order to claim it on my taxes? I'd really like to have all my ducks in a row asap. Plus some of it I will need to do before the home inspection. Do I have to have children in my care to claim these things? Seems I should be able to...yes? No?
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Old 02-20-2011, 02:30 PM
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yes you can write off anything that you needed to purchase to start the business, including classes and licenses. Make sure that you keep all of your reciepts... Also look into a program called minute menu kids online. it is a very helpful program for DCP

good luck
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Old 02-20-2011, 02:33 PM
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yes you can write off anything that you needed to purchase to start the business, including classes and licenses. Make sure that you keep all of your reciepts... Also look into a program called minute menu kids online. it is a very helpful program for DCP

good luck
Thank you! I'm so excited...this is what I was meant to do. Why didn't I do this earlier? Lots of work? Yes! Still...sometimes the most rewarding things are the hardest at the same time. Just ask any mother! LOL!

I'll probably be asking lots of "dumb" questions but goes with the territory of wanting everything "just right"
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Old 02-20-2011, 02:34 PM
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What about when I am legally caring for my friend's kids but not yet licensed?
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Old 02-20-2011, 02:36 PM
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well it is legal to operate as a business so again I would say yes.... Questions regarding taxes are usually best to ask tom copeland...

I see that you are in Ca...where abouts?
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Old 02-20-2011, 02:57 PM
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Welcome to the forum!

http://www.daycare.com/california/
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Old 02-20-2011, 03:16 PM
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well it is legal to operate as a business so again I would say yes.... Questions regarding taxes are usually best to ask tom copeland...

I see that you are in Ca...where abouts?
I am in NorCal...east bay of SF
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Old 02-20-2011, 03:23 PM
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im in south bay!!!
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Old 02-20-2011, 03:46 PM
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Thank you! Ok...so I read this and determined that if I have one family I am considered exempt from having to have a license thus I am still legally operating. Does anyone know if I am still exempt if I have one family whom I am charging AND I have one family who we are sharing child care (for our own children) like a cooperative and not charging? Can I do both while I am waiting for my license and still be operating legally?

The manual says I can do it, but isn't clear if I can do both at the same time.
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Old 02-20-2011, 03:48 PM
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im in south bay!!!
Of NorCal or SoCal? I've lived in both so that's why I ask.
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Old 02-20-2011, 03:50 PM
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Quote:
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well it is legal to operate as a business so again I would say yes.... Questions regarding taxes are usually best to ask tom copeland...

I see that you are in Ca...where abouts?
I am reading several of his books now, and I got the calendar which I love. How can I best direct questions to him?
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Old 02-20-2011, 03:50 PM
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I was told NO. one family period. you cannot care for more than one family at a time. does not matter how many children they have, but have to be from the same household

I would call licensing just to make sure you are doing things right. that would suck if you were trying to provide honest care and you were cited for non compliance of regultaions before even getting your license.......
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Old 02-20-2011, 03:52 PM
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there is a section of daycare taxes here... I would ask there even though others often post questions here... also, he is holding a tax webnair soon that sounds very benefical

I am going to watch it......it only cost 25.00 and is tax deductable
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  #14  
Old 02-20-2011, 03:56 PM
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Quote:
Originally Posted by daycare View Post
I was told NO. one family period. you cannot care for more than one family at a time. does not matter how many children they have, but have to be from the same household

I would call licensing just to make sure you are doing things right. that would suck if you were trying to provide honest care and you were cited for non compliance of regultaions before even getting your license.......
Exactly! Ok...I think you may be right about the one family overriding other options. I'll check to be sure if I have an issue. Hopefully I can get things rolling and done right after orientation.
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Old 02-20-2011, 03:57 PM
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Quote:
Originally Posted by daycare View Post
there is a section of daycare taxes here... I would ask there even though others often post questions here... also, he is holding a tax webnair soon that sounds very benefical

I am going to watch it......it only cost 25.00 and is tax deductable
Am I in the taxes section? LOL! Thanks for the webnair info!!!
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  #16  
Old 02-20-2011, 04:00 PM
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lol no, you are in the provider form, but if you look at the top of your screen to the left, you will find a link that says daycare form and taxes...
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Old 02-20-2011, 04:09 PM
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lol no, you are in the provider form, but if you look at the top of your screen to the left, you will find a link that says daycare form and taxes...
LOL! I see it now! Thanks!
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  #18  
Old 02-20-2011, 04:12 PM
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Wait a minute...I just clicked and I "think" (squinting here) I am in the tax area now??
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Old 02-20-2011, 04:17 PM
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imm sorry i am sending you on a wilde goose chase...lol

yes, looks like they both link to this form...so you can just post your question directed to tom in the title...
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  #20  
Old 02-20-2011, 04:23 PM
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imm sorry i am sending you on a wilde goose chase...lol

yes, looks like they both link to this form...so you can just post your question directed to tom in the title...
Hee-hee! Whew! Thanks again!
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