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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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Old 10-29-2012, 05:12 AM
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frugalmama4 frugalmama4 is offline
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Location: Texas
Posts: 459
Default Tom Copeland Question On Claiming Shared Expense

Good Morning Tom, I hope you had a great weekend!

Questions-

I shared the expense of advertisement with another provider, unsure how to claim it.

1. Store ad: The contract was listed under the other provider name (business & personal…I do have a copy of the contract also) and payment was drafted from her bank account monthly. I paid my share to her using cash and checks…how would I claim this for my taxes?

Other write offs-

2. I purchased a commercial 6 passenger stroller (100% daycare use) cost $600.00; can I write off the entire amount all at once? Or will I have to deprecate it?
If deprecate, which method and convention? I use MMK to input all expense.
3. I purchase myself a new bed and mattress (No daycare kids allowed), is this still something I can write off? (I mean I need to have a good night sleep…right)? 
4. I attend monthly association meetings, can I write off my dinner expense? If so, where do I input this in MMK?
5. Can I write off the cost of scrubs? (I wear during daycare hours)
6. I purchased decorative items (bowls, vases) sits on my entry way table? Can I claim this under time-space?
7. Can I write off my Homeowners association dues? Where would I input this in MMK?
8. We purchase a new truck "paid cash to owner $2800.00 taxes $290.00" it's use for business and personal. How do I claim/write this off?

Thanks so much Tom for all you do for us providers!

Have a great Monday!

Last edited by frugalmama4; 10-29-2012 at 05:30 AM. Reason: added question
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Old 10-31-2012, 07:50 PM
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TomCopeland TomCopeland is offline
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Location: St. Paul, Minnesota
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Default Deductions

Quote:
Originally Posted by frugalmama4 View Post
Good Morning Tom, I hope you had a great weekend!

Questions-

I shared the expense of advertisement with another provider, unsure how to claim it.

1. Store ad: The contract was listed under the other provider name (business & personal…I do have a copy of the contract also) and payment was drafted from her bank account monthly. I paid my share to her using cash and checks…how would I claim this for my taxes?

Other write offs-

2. I purchased a commercial 6 passenger stroller (100% daycare use) cost $600.00; can I write off the entire amount all at once? Or will I have to deprecate it?
If deprecate, which method and convention? I use MMK to input all expense.
3. I purchase myself a new bed and mattress (No daycare kids allowed), is this still something I can write off? (I mean I need to have a good night sleep…right)? 
4. I attend monthly association meetings, can I write off my dinner expense? If so, where do I input this in MMK?
5. Can I write off the cost of scrubs? (I wear during daycare hours)
6. I purchased decorative items (bowls, vases) sits on my entry way table? Can I claim this under time-space?
7. Can I write off my Homeowners association dues? Where would I input this in MMK?
8. We purchase a new truck "paid cash to owner $2800.00 taxes $290.00" it's use for business and personal. How do I claim/write this off?

Thanks so much Tom for all you do for us providers!

Have a great Monday!
1) Claim this as advertising. Get a receipt from her for this money that says what it's for on the receipt.
2) You can deduct the full $600 in 2012 using the Section 179 rule. Claim this on Part I of Form 4562.
3) Have a good night's sleep, but it's not deductible because children don't use it. If they took naps on it, you could deduct part of the cost.
4) If you have dinner with other providers you can deduct 50% of the cost of the meal. Keep a record of who you had dinner with and what you discussed.
5) Yes, this would be considered a "uniform" and could be deducted 100%
6) Yes
7) Yes, put this on Form 8829, line 21 Other expenses
8) You can either use the standard mileage method ($.555) or use the actual expenses method. If you use the actual method you can depreciate the vehicle over 5 years and include the taxes as part of the cost.
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