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-   -   Hi, New Here With A Tax Question (https://www.daycare.com/forum/showthread.php?t=88220)

Daycarefamily 01-09-2018 09:00 AM

Hi, New Here With A Tax Question
 
Hi, husband of a family of six. Wife runs a residential day care with the help of our four daughters. I do the legal, tax and policy admin for the business.

If I take a business deduction for mortgage interest and taxes can we then take the standard deduction on our personal taxes? I'm pretty sure you can only take the remainder of the deduction if you itemize. This could greatly benefit us with the increased standard deduction tax year 2018.

I would also like to say being my first post Tom Copeland and his books have been a godsend. Its his name that brought me to this forum, which is enlightening and often entertaining! Check out his audit archives some time. I learned the most from those;)

TomCopeland 01-09-2018 11:27 AM

Standard deduction
 
Quote:

Originally Posted by Daycarefamily (Post 660899)
Hi, husband of a family of six. Wife runs a residential day care with the help of our four daughters. I do the legal, tax and policy admin for the business.

If I take a business deduction for mortgage interest and taxes can we then take the standard deduction on our personal taxes? I'm pretty sure you can only take the remainder of the deduction if you itemize. This could greatly benefit us with the increased standard deduction tax year 2018.

I would also like to say being my first post Tom Copeland and his books have been a godsend. Its his name that brought me to this forum, which is enlightening and often entertaining! Check out his audit archives some time. I learned the most from those;)

You always want to take the business portion of your property taxes and mortgage interest on IRS Form 8829 Expenses for Business Use of Your Home. Taking the standard deduction on your personal taxes doesn't affect your ability to claim these expenses on Form 8829. If you itemize on your personal taxes, then you would claim the personal portion of property taxes and mortgage interest on Schedule A. Either way, you can always claim the business portion of these expenses on Form 8829.

Unregistered 01-09-2018 02:24 PM

Thanks
 
Thank you for the reply.


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