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-   -   Childcare Grants and Taxes- Questions (https://www.daycare.com/forum/showthread.php?t=80034)

spedmommy4 11-12-2015 01:39 PM

Childcare Grants and Taxes- Questions
 
My business received two grants from First 5 this year.

One was a quality award grant. It did come with stings attached. I had a list of approved items I could spend it on. (Eg: curriculum, increasing employee wages, trainings, etc)

The second was a health & safety reimbursement grant. First 5 came out and assessed my program and gave me a very specific list. I could buy only the "safety improvement" items from the list and then get reimbursed after completing the project to their statistic action, or I would get nothing.

My questions are:

Are grants in any way different from the income I receive from parents in the eyes of the IRS?
And, if so, are these two grants treated differently?

Michael 11-12-2015 02:36 PM

I think Tom Copeland answered this here: http://daycare.com/forum/showthread.php?t=67741

"You must report as income the value of your scholarship and the $500. Then, you can deduct as a business expense the value of the scholarship and the $500 based on the normal rules of depreciation. "

TomCopeland 11-12-2015 02:54 PM

grants
 
Quote:

Originally Posted by spedmommy4 (Post 564678)
My business received two grants from First 5 this year.

One was a quality award grant. It did come with stings attached. I had a list of approved items I could spend it on. (Eg: curriculum, increasing employee wages, trainings, etc)

The second was a health & safety reimbursement grant. First 5 came out and assessed my program and gave me a very specific list. I could buy only the "safety improvement" items from the list and then get reimbursed after completing the project to their statistic action, or I would get nothing.

My questions are:

Are grants in any way different from the income I receive from parents in the eyes of the IRS?
And, if so, are these two grants treated differently?

You must report these grants as income, in the same way as parent tuition. You can then deduct as business expenses the items you purchase.

spedmommy4 11-13-2015 06:56 AM

Quote:

Originally Posted by TomCopeland (Post 564690)
You must report these grants as income, in the same way as parent tuition. You can then deduct as business expenses the items you purchase.

Thank you Tom.


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