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? |
I think Tom Copeland answered this here: https://www.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. " |
grants
Originally Posted by spedmommy4: |
Originally Posted by TomCopeland: |
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