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Forum: Daycare and Taxes 03-29-2020, 07:00 AM
Replies: 1
Views: 112
Posted By TomCopeland
shut down

Good question. The answer is that it's not clear. I would ask DHS if you can't follow these procedures do they recommend that you shut down? If so, you would be eligible. If they don't recommend you...
Forum: Daycare and Taxes 03-28-2020, 02:25 PM
Replies: 2
Views: 92
Posted By TomCopeland
depreciation?

Is this a kitchen remodeling or a repair? If it's a repair you can deduct the business portion in one year. If it's an improvement you must depreciate the business portion over 39 years. This is a...
Forum: Daycare and Taxes 03-28-2020, 02:22 PM
Replies: 3
Views: 113
Posted By TomCopeland
unemployment

You are eligible for unemployment and you should file. You don't have to have the virus to be eligible. It's true that most states have an online application to file for unemployment but it's not set...
Forum: Daycare Center and Family Home Forum 03-20-2020, 09:53 AM
Replies: 4
Views: 291
Posted By TomCopeland
waiver form

You are not responsible for any illness contracted by a child while in your program unless the parent can prove you deliberately created the conditions that led to the illness. So, don't worry about...
Forum: Daycare Center and Family Home Forum 03-17-2020, 02:27 PM
Replies: 33
Views: 1,045
Posted By TomCopeland
Free Webinar: Dealing with the Financial Side of the Coronavirus

I'm offering a free webinar on "Dealing with the Financial Side of the Coronavirus" on Monday, March 23rd starting at 8pm Eastern Time.
To register:...
Forum: Daycare Center and Family Home Forum 03-11-2020, 02:10 PM
Replies: 289
Views: 17,002
Posted By TomCopeland
Free webinar on Coronavirus for child care professionals

I'll be on a panel discussion of the coronavirus and how it will affect child care programs on Friday, March 20th from 2:00-3:30pm Eastern Time.

It's called Bracing for COVID-19: What Early...
Forum: Daycare and Taxes 03-02-2020, 09:54 AM
Replies: 4
Views: 232
Posted By TomCopeland
Substitute

Because she is in the business of providing substitute care, she is an independent contractor and you don't need to pay any payroll taxes. Issue her a Form 1099 if you pay her more than $600 in a...
Forum: Daycare and Taxes 03-02-2020, 09:53 AM
Replies: 2
Views: 182
Posted By TomCopeland
Photoshop

Because you are married, it doesn't matter if your husband pays something out of his checking account for your business. So, because you are using Photoshop for your business you can deduct the...
Forum: Daycare and Taxes 03-02-2020, 09:52 AM
Replies: 25
Views: 18,982
Posted By TomCopeland
S Corp

Before switching to an S Corp, make sure you understand all the tax consequences. You will lose the ability to depreciate your home. You must set up an "accountable plan" or other process to deduct...
Forum: Daycare and Taxes 03-02-2020, 09:50 AM
Replies: 25
Views: 18,982
Posted By TomCopeland
Llc?

There are various types of LLCs: single person LLC, partnership LLC, S and C Corp LLC. In all cases they do provide some personal liability protection so I don't know why someone would say you need...
Forum: Daycare and Taxes 02-24-2020, 03:35 PM
Replies: 2
Views: 138
Posted By TomCopeland
cameras

Conservatively, apply your time-space% to these expenses because you do use them personally. Assertively, you could claim a higher percentage than your time-space% if you can argue that it's used...
Forum: Daycare and Taxes 02-24-2020, 03:33 PM
Replies: 4
Views: 232
Posted By TomCopeland
Substitutes

You must treat her as an employee unless she is in the business of providing substitute care for other providers. Withhold Social Security/Medicare taxes and file Form 944, W-2 and W-3 at the end of...
Forum: Daycare and Taxes 02-17-2020, 11:58 AM
Replies: 2
Views: 274
Posted By TomCopeland
home depreciation

You are a child care provider entitled to depreciate your home. Add up all the hours you worked in your home for the five months and divide by the total number of hours in five months. Multiply this...
Forum: Daycare and Taxes 02-17-2020, 11:55 AM
Replies: 1
Views: 100
Posted By TomCopeland
deductions

Yes, you can deduct the business portion of any expense, no matter what the cost, with the exception of the purchase of a home, home improvement or home addition. Multiply the $300 by your...
Forum: Daycare and Taxes 02-13-2020, 06:36 PM
Replies: 23
Views: 605
Posted By TomCopeland
overtime hours

A director is an exempt employee which means they are not required to pay you overtime pay. However, these are very long hours with no benefits. You should think twice about taking this job.
Forum: Daycare and Taxes 02-11-2020, 10:12 AM
Replies: 6
Views: 694
Posted By TomCopeland
ac/heat pump

This sounds like a home improvement that should be depreciated over 39 years and it represents more than half of the cooling/heating system in your home. See my article about exceptions to this...
Forum: Daycare and Taxes 02-07-2020, 08:04 AM
Replies: 6
Views: 306
Posted By TomCopeland
Kidkare

I would recommend keep bugging KidKare because you will need access to your records if you are audited. If you send me an email at tomcopeland@live.com I will forward your complaint to my contact...
Forum: Daycare and Taxes 02-07-2020, 08:01 AM
Replies: 2
Views: 220
Posted By TomCopeland
Time-Space%

Your answer is correct! Do not worry that it is higher than last year. This is common.
Forum: Daycare and Taxes 02-07-2020, 07:15 AM
Replies: 6
Views: 694
Posted By TomCopeland
water heater

Providers can deduct the business portion of any expense in one year, without having to depreciate it. The exceptions are the purchase of a home, home improvement and home addition.
Forum: Daycare and Taxes 02-07-2020, 07:14 AM
Replies: 5
Views: 271
Posted By TomCopeland
zero income

I assume you were ready to care for children in 2019. In that case you can claim any business expenses on Schedule C and show a loss. That loss will reduce your husband's taxable income. You want to...
Forum: Daycare and Taxes 01-30-2020, 10:55 AM
Replies: 3
Views: 284
Posted By TomCopeland
end of year receipt

Nope. There is not even a requirement you give the parent a receipt or your EIN unless the parent previously gave you Form W-10. So, tell the parent they have all the information they need. If you...
Forum: Daycare and Taxes 01-28-2020, 02:29 PM
Replies: 28
Views: 39,315
Posted By TomCopeland
hours

To count hours in the calculation of your time-space% you must be in your home when daycare children are not present. Hours spent away from your home, even if on activities exclusively for your...
Forum: Daycare and Taxes 01-28-2020, 09:16 AM
Replies: 6
Views: 254
Posted By TomCopeland
car expenses

I don't understand what you are saying. If you used the standard mileage rate on your old car and sold it, and plan to use the standard mileage rate on the new car, then you don't have to deal with...
Forum: Daycare and Taxes 01-27-2020, 09:13 AM
Replies: 6
Views: 254
Posted By TomCopeland
sold a car

Take the original price of the old car and subtract from it all the depreciation you claimed. Then add the purchase price of the new vehicle to this. That's your basis in the new vehicle.
Forum: Daycare and Taxes 01-22-2020, 10:51 AM
Replies: 1
Views: 260
Posted By TomCopeland
actual business use percent

When using an actual business use percent instead of your time-space% you need to try to estimate the actual business use based on a couple weeks of observing how often the dishwasher is used for...
Forum: Daycare and Taxes 01-11-2020, 07:41 AM
Replies: 1
Views: 390
Posted By TomCopeland
tax credit

No, there is no special tax credit for new providers. However, there are hundreds of household expenses you can deduct. And, you can deduct the business portion of all items you owned in your home...
Forum: Daycare and Taxes 01-11-2020, 07:40 AM
Replies: 1
Views: 244
Posted By TomCopeland
house expenses

No, you can't rent to yourself. Calculate your time-space% and deduct this business portion of house expenses on Form 8829 Expenses for Business Use of Your Home. Since you will have an exclusive use...
Forum: Daycare and Taxes 01-11-2020, 07:38 AM
Replies: 23
Views: 605
Posted By TomCopeland
tracking hours

Track two months worth of these hours on a calendar or on KidKare. Then use the average for these two months for the rest of the year.
Forum: Daycare and Taxes 01-08-2020, 08:03 AM
Replies: 1
Views: 256
Posted By TomCopeland
Roof

The money you received from insurance is not income and you can't deduct it. You can deduct your out of pocket expenses. For the roof, depreciate your time-space% of the $2,000 over 39 years. For the...
Forum: Daycare and Taxes 01-08-2020, 08:01 AM
Replies: 46
Views: 27,115
Posted By TomCopeland
unlicensed provider

Yes. You can claim the child care tax credit. You want to get her Social Security number.
Forum: Daycare and Taxes 01-08-2020, 08:00 AM
Replies: 25
Views: 18,982
Posted By TomCopeland
Llc

You can get $1million occurrence and $3 million aggregate insurance from most companies. That's the max. If a parent sues you, you contact your business liability agent and they take care of the...
Forum: Daycare and Taxes 01-08-2020, 07:57 AM
Replies: 25
Views: 18,982
Posted By TomCopeland
Single person LLC

The advantage of a single person LLC is that your tax forms are the same as a sole proprietor and that means you can deduct expenses in the same way. If you set up any other type of LLC the forms are...
Forum: Daycare and Taxes 01-08-2020, 07:55 AM
Replies: 5
Views: 414
Posted By TomCopeland
100% deduction

Anything you buy now you will be able to deduct this year. Go ahead.
Forum: Daycare and Taxes 01-02-2020, 02:36 PM
Replies: 23
Views: 605
Posted By TomCopeland
Time-Space%

It's a somewhat good analogy. When you have an exclusive use room it's considered business use, even if no one is in the room. But, if you are doing business activities in the room when children are...
Forum: Daycare and Taxes 01-02-2020, 02:33 PM
Replies: 4
Views: 201
Posted By TomCopeland
Sorry, I was think about an HRA. My fault. Yes,...

Sorry, I was think about an HRA. My fault. Yes, you can continue to deduct these premiums even though you were closed for a few months.
Forum: Daycare and Taxes 01-02-2020, 12:58 PM
Replies: 23
Views: 605
Posted By TomCopeland
Time-Space%

It's okay to argue with me! Although I didn't take what you said as an argument. It's always appropriate to ask me or your tax preparer or the IRS, "Where does it say that?"
If your husband is self...
Forum: Daycare and Taxes 01-02-2020, 09:50 AM
Replies: 23
Views: 605
Posted By TomCopeland
Time-Space%

There is no IRS publication that says you can or can't count an hour you are open but don't care for children. However, if you aren't caring for children you aren't using your home for your business...
Forum: Daycare and Taxes 01-02-2020, 09:27 AM
Replies: 23
Views: 605
Posted By TomCopeland
Time-Space%

If you open at 7am and no child shows up before 6:30am, you can't count this half hour just because you are open. However, if you are doing some business activity during that time, you can count the...
Forum: Daycare and Taxes 01-02-2020, 09:24 AM
Replies: 26
Views: 2,814
Posted By TomCopeland
hours

You can record these hours anywhere. I suggest putting them on a calendar. You want to record the time of day and what you did. You can count any time you are in your home when children are not...
Forum: Daycare and Taxes 01-02-2020, 09:20 AM
Replies: 25
Views: 18,982
Posted By TomCopeland
Llc?

You are not required to become an LLC! 99% of providers are self employed. If you set up a single person LLC, you will deduct all the same deductions as being self employed. If you set up any other...
Forum: Daycare and Taxes 01-02-2020, 09:16 AM
Replies: 5
Views: 280
Posted By TomCopeland
tax info

You can either let them contact you or require them to pick up a copy.
Forum: Daycare and Taxes 01-02-2020, 09:15 AM
Replies: 13
Views: 2,634
Posted By TomCopeland
when to deduct expenses

You can deduct items you purchased for your business before you get your license. Your accountant is wrong. Save the receipts.
Forum: Daycare and Taxes 01-02-2020, 09:13 AM
Replies: 5
Views: 280
Posted By TomCopeland
tax credit

It's the parent's responsibility to ask you for tax information, not yours. Most providers give it to parents without being asked. You are not required to give a receipt or your tax id to parents.
Forum: Daycare and Taxes 01-02-2020, 09:12 AM
Replies: 5
Views: 414
Posted By TomCopeland
Deductions

You can deduct as a 100% business items that are used 100% for your business. Make sure it's 100% business use and not 95% business use. Any expense can be deducted in one year (100% or partly...
Forum: Daycare and Taxes 01-02-2020, 09:10 AM
Replies: 4
Views: 242
Posted By TomCopeland
Time-Space%

Your time-space% appears on IRS Form 8829, line 7. You do need to know if he is applying your time-space% on items that are shared and is deducting 100% on items used exclusively for your business....
Forum: Daycare and Taxes 01-02-2020, 08:53 AM
Replies: 4
Views: 201
Posted By TomCopeland
health insurance premiums

You cannot deduct health insurance premiums for yourself as a business expense unless you have set up an HRA (health reimbursement account). If you do have an HRA you can deduct these premiums even...
Forum: Daycare and Taxes 12-31-2019, 10:33 AM
Replies: 1
Views: 183
Posted By TomCopeland
when to deposit income?

2019. Report income in the year you receive it, not the year you earned it. See my article on this: http://tomcopelandblog.com/when-do-you-report-income-3
Forum: Daycare and Taxes 12-29-2019, 07:51 AM
Replies: 2
Views: 293
Posted By TomCopeland
Hours

Unfortunately, you can't count hours spent on business activities away from your home. It's good that you were with your husband, though!
Forum: Daycare Center and Family Home Forum 12-07-2019, 08:32 AM
Replies: 5
Views: 842
Posted By TomCopeland
termination notice

" _______ (date) will be the last day of care for your child _______ (name). Payment is due through this date. Thank you for the opportunity to provide care for your child. Signed __________ (name of...
Forum: Daycare and Taxes 11-20-2019, 07:31 AM
Replies: 5
Views: 480
Posted By TomCopeland
Caring for own child - deductible?

I appreciate it that you are taking on this responsibility. Unfortunately, you cannot deduct any business expenses associated with an adopted child (or biological child).
Forum: Daycare and Taxes 11-07-2019, 08:22 PM
Replies: 3
Views: 307
Posted By TomCopeland
employee?

She is probably an independent contractor because she works for a number of providers. To make her case stronger she should get a business name and register it.
Forum: Daycare and Taxes 11-07-2019, 09:59 AM
Replies: 3
Views: 307
Posted By TomCopeland
Substitutes

Here are two articles to read: http://tomcopelandblog.com/are-your-helpers-employees-or-independent-contractors

http://tomcopelandblog.com/the-many-responsibilities-of-hiring-an-employee
Forum: Daycare and Taxes 10-10-2019, 09:17 AM
Replies: 46
Views: 27,115
Posted By TomCopeland
unlicensed

You are correct. If you are in violation of your state child care licensing rules and care for more than 6 children, parents cannot claim the child care tax credit.
Forum: Daycare and Taxes 10-08-2019, 09:20 AM
Replies: 3
Views: 542
Posted By TomCopeland
Licensed?

I don't know the answer to this question. I recommend calling the California Department of Labor and ask the question. You don't have to give your name.
Forum: Daycare and Taxes 10-01-2019, 08:15 AM
Replies: 3
Views: 457
Posted By TomCopeland
driveway

Add up all the costs, multiply by your time-space% and deduct in one year as a repair. You can't deduct anything for your labor. If you pay someone to do the work you can deduct the time-space% of...
Forum: Daycare and Taxes 09-17-2019, 09:26 AM
Replies: 1
Views: 468
Posted By TomCopeland
home addition

A home addition must be depreciated over 39 years. Add up all the costs, multiply by your time-space % (assuming you do use the addition for your business) and spread this over 39 years on Form 4562.
Forum: Daycare and Taxes 09-13-2019, 01:24 PM
Replies: 1
Views: 379
Posted By TomCopeland
Kitchen remodel

Claim the time-space% of the appliances (dishwasher, fridge, and stove) n one year. If the remaining items cost less than $2,500 deduct them also in one year. If you only put in the appliances,...
Forum: Daycare Center and Family Home Forum 08-27-2019, 09:30 AM
Replies: 118
Views: 4,085
Posted By TomCopeland
wait lists

Is it legal to charge a fee to be on a wait list? Yes. Is it legal to move someone to the top of the wait list if they pay a fee? Yes. Is it legal to move someone up the wait list even if they don't...
Forum: Daycare and Taxes 08-21-2019, 09:42 AM
Replies: 46
Views: 27,115
Posted By TomCopeland
unlicensed

File Schedule C. If you are legally unlicensed you can also claim house expenses on Form 8829. If you are operating illegally you can't claim any house expenses (those shown on Form 8829).
Forum: Daycare and Taxes 08-20-2019, 10:44 AM
Replies: 6
Views: 497
Posted By TomCopeland
estimated taxes

Yes, your combined gross income.
Forum: Daycare and Taxes 08-19-2019, 03:17 PM
Replies: 6
Views: 497
Posted By TomCopeland
tax withholding

40% is too much. Not knowing how much your business expenses will be, I estimate that you will owe about 20% federal tax on the 100k of gross income. You will also owe state income tax, and I don't...
Forum: Daycare and Taxes 08-19-2019, 03:14 PM
Replies: 2
Views: 336
Posted By TomCopeland
plumbing

If the work represents less than half of the plumbing for your home, treat it as a repair and deduct your time-space% of the cost in one year. If it represents more than half of the plumbing for your...
Forum: Daycare and Taxes 08-16-2019, 09:26 AM
Replies: 5
Views: 693
Posted By TomCopeland
provider not licensed

Even if you are operating illegally you must still report your income on Schedule C. Since you are operating illegally you cannot claim any house expenses on Form 8829, but you can claim all other...
Forum: Daycare and Taxes 08-07-2019, 06:58 AM
Replies: 0
Views: 508
Posted By TomCopeland
2019-2020 CACFP Reimbursement Rates

The USDA has just released the Food Program reimbursement rates for July 2019 - June 2020:
Breakfast: Tier I - $1.33; Tier II - $.48
Lunch/Supper: Tier I - $2.49; Tier II - $1.50
Snack: Tier I -...
Forum: Daycare and Taxes 08-05-2019, 11:00 AM
Replies: 4
Views: 811
Posted By TomCopeland
standard meal allowance rule

When you use the standard meal allowance rate to claim food expenses you do not save any food receipts. You do not deduct the actual cost of the food. You add up the meals and snacks you serve the...
Forum: Daycare and Taxes 07-24-2019, 11:56 AM
Replies: 4
Views: 468
Posted By TomCopeland
home depreciation

You will only owe tax on house depreciation when you sell your home. You want to depreciate your home even if you only plan to be in business for one year! Let's say you are entitled to claim $1,000...
Forum: Daycare and Taxes 07-24-2019, 09:58 AM
Replies: 4
Views: 468
Posted By TomCopeland
Home depreciation

In the year you sell your home you will owe taxes on the amount of house depreciation you claimed (or were entitled to claim!). The taxes you pay will depend on your family's tax bracket in the year...
Forum: Daycare and Taxes 07-05-2019, 08:00 AM
Replies: 4
Views: 1,314
Posted By TomCopeland
kitchen remodel

Since the cost is less than $2,500 you can deduct the business portion in one year on Schedule C. Call it a repair.
Forum: Daycare and Taxes 07-03-2019, 10:30 AM
Replies: 1
Views: 447
Posted By TomCopeland
fence

You can deduct the business portion of the fence in one year, rather than depreciating it. If you are required to put up the fence by licensing, deduct 100% of the cost. If you have personal reasons...
Forum: Daycare and Taxes 06-06-2019, 08:21 AM
Replies: 5
Views: 742
Posted By TomCopeland
receipts

No. You must save your business receipts for at least three years, in some states four years. This includes receipts for craft materials, curriculum, food (if you use the actual expense method), car,...
Forum: Daycare and Taxes 06-05-2019, 10:19 AM
Replies: 5
Views: 742
Posted By TomCopeland
Itemize or standard deduction?

Many more providers will take the standard deduction and no longer itemize under the new tax laws. If so, there is no reason to keep receipts for medical expenses, charitable contributions, etc....
Forum: Daycare and Taxes 06-05-2019, 10:17 AM
Replies: 4
Views: 440
Posted By TomCopeland
Hra

Federal law does not require you to pay your husband to set up an HRA. I won a US Tax Court case on this point. Some HRA companies (TASC for one) has its own rules and requires some salary be paid to...
Forum: Daycare and Taxes 06-04-2019, 11:19 AM
Replies: 4
Views: 440
Posted By TomCopeland
Hra

Yes, assuming you have an HRA plan in both years.
Forum: Daycare and Taxes 05-27-2019, 10:32 AM
Replies: 2
Views: 622
Posted By TomCopeland
closed?

As long as you are still be paid to care for children, you are still in business. If you are now operating legally according to your state law you can continue to deduct all the same expenses. If you...
Forum: Daycare and Taxes 05-17-2019, 10:07 AM
Replies: 3
Views: 658
Posted By TomCopeland
new tax law

The new tax laws make no changes in your ability to use your time-space% on house expenses (property taxes, mortgage interest, house insurance, utilities, house repairs and house depreciation). There...
Forum: Daycare and Taxes 05-03-2019, 11:48 AM
Replies: 2
Views: 686
Posted By TomCopeland
holding fee

If you refund any money, report it as a business expense. Call it "parent refund" and put under Other Expense on Schedule C. Assuming your got the fee in 2018 and refunded part of it in 2019, you and...
Forum: Daycare and Taxes 04-24-2019, 12:17 PM
Replies: 3
Views: 603
Posted By TomCopeland
fence record keeping

Keep your notes as to how you calculated your actual business use percentage for at least three years after filing your tax return.
Forum: Daycare and Taxes 04-23-2019, 02:25 PM
Replies: 3
Views: 603
Posted By TomCopeland
fence

The conservative answer: deduct your time-space% of the cost. Why? Because your own children do get the benefit of the fence.
The assertive answer: deduct 100% of the cost. Why? Because you wouldn't...
Forum: Daycare and Taxes 04-21-2019, 10:03 AM
Replies: 23
Views: 1,248
Posted By TomCopeland
expense categories

It doesn't matter what expense category you put your deductions in. Your categories are fine. However, you can also deduct: mortgage interest, house depreciation, repairs, food, furniture,...
Forum: Daycare and Taxes 04-21-2019, 10:00 AM
Replies: 23
Views: 1,248
Posted By TomCopeland
time-space%

There is a comprehensive discussion of how to calculate your time-space percentage in my Family Child Care Record Keeping Guide.
Forum: Daycare and Taxes 04-18-2019, 06:58 AM
Replies: 28
Views: 39,315
Posted By TomCopeland
time and receipts

You can count the time you spend on activities for your business that you wouldn't be doing if you weren't in business. Since you would be mowing the lawn and weeding, etc even if you weren't in...
Forum: Daycare and Taxes 04-17-2019, 09:08 AM
Replies: 2
Views: 549
Posted By TomCopeland
taxes

#1 - Basically, yes. When you file Form 1040SE you actually pay a tax equivalent to 14.1% of the $80,000.
#2 - You will add your profit ($80,000) to your husband's gross income ($100,000) on Form...
Forum: Daycare and Taxes 04-10-2019, 03:11 PM
Replies: 23
Views: 1,248
Posted By TomCopeland
time-space%

Include the garage and basement in the total square feet of your home. They are probably used regularly for your business. If the 144 square foot room is used exclusively for your business, enter it...
Forum: Daycare and Taxes 04-10-2019, 03:09 PM
Replies: 4
Views: 504
Posted By TomCopeland
expenses

Yes and yes.
Forum: Daycare and Taxes 04-09-2019, 07:46 AM
Replies: 23
Views: 1,248
Posted By TomCopeland
space%

To claim a room as regularly used for your business it needs to be used more than "occasionally." If you use it 2-3 times per week to go in there to get stuff for your business, that's regularly...
Forum: Daycare and Taxes 04-06-2019, 06:48 PM
Replies: 1
Views: 619
Posted By TomCopeland
food expenses

When you amend your tax return you will redo Schedule C to show the higher food deduction. Then you will fill out Form 1040 and Schedule SE to reflect this change and finally Form 1040X. You can go...
Forum: Daycare and Taxes 04-06-2019, 10:50 AM
Replies: 7
Views: 754
Posted By TomCopeland
employees

You can deduct any amount you pay someone to help you care for children, whether it's full or part time. However, you must pay payroll taxes even for part time workers.
Forum: Daycare and Taxes 04-03-2019, 02:32 PM
Replies: 9
Views: 745
Posted By TomCopeland
section 179

If you used Section 179, that goes on Form 4562, Part I. If you depreciated the home improvement it would go on line 19i.

Line 14 is for items other than home improvements or home additions that...
Forum: Daycare and Taxes 04-03-2019, 02:30 PM
Replies: 9
Views: 745
Posted By TomCopeland
Section 179

A home improvement is depreciated over 39 years. So, if she goes out of business in 5 years she will have to report as income the amount of 34 years of depreciation.
Forum: Daycare and Taxes 04-03-2019, 10:28 AM
Replies: 9
Views: 745
Posted By TomCopeland
renter

Renters can deduct home improvements that they pay for even though they are renting, since they paid for it!
Forum: Daycare and Taxes 04-03-2019, 09:23 AM
Replies: 9
Views: 745
Posted By TomCopeland
time-space%

You are correct based on the following assumptions. You don't have a garage and the basement area is never used personally. That means you don't have a furnace or laundry room in the basement.

The...
Forum: Daycare and Taxes 04-01-2019, 06:48 AM
Replies: 3
Views: 641
Posted By TomCopeland
tax return review

I can review your tax return for free if you are a member of my Child Care Business Partnership that costs $15 a year. You must be using the accounting section of KidKare to be a member of the...
Forum: Daycare and Taxes 03-29-2019, 10:38 AM
Replies: 1
Views: 508
Posted By TomCopeland
repairs

Put repairs to your home on Form 8829. Put repairs to items you brought into your home on Schedule C.
Forum: Daycare and Taxes 03-29-2019, 10:35 AM
Replies: 11
Views: 710
Posted By TomCopeland
depreciation

If you count 12 months you can deduct 12 months of depreciation. If you only count 10 months, you get 10 months of depreciation.
Forum: Daycare and Taxes 03-28-2019, 08:49 AM
Replies: 11
Views: 710
Posted By TomCopeland
time-space%

If you are going to use 8760 as the total number of hours in the year, then you are entitled to claim 12 months worth of house expenses. If you are going to use 7056 hours in the year, then you only...
Forum: Daycare and Taxes 03-28-2019, 08:45 AM
Replies: 11
Views: 710
Posted By TomCopeland
time-space%

There is no rule that says you can't treat your business as open for ten months a year. It's logical that if you are only open for ten months a year you can only claim expenses for those ten months....
Forum: Daycare and Taxes 03-28-2019, 08:40 AM
Replies: 3
Views: 455
Posted By TomCopeland
Mileage

No. That's commuting which is not considered business mileage.
Forum: Daycare and Taxes 03-27-2019, 09:26 AM
Replies: 11
Views: 710
Posted By TomCopeland
summer off

If you say you are open for twelve months a year, then count the utilities for 12 months. If you say you are open for 10 months a year, don't count house expenses for 12 months. If you are open for...
Forum: Daycare and Taxes 03-25-2019, 11:41 AM
Replies: 1
Views: 555
Posted By TomCopeland
generator

Since it's not considered a home improvement (it's not permanently attached to your home) you can treat this as a home repair and deduct your time-space% of this in one year.
Forum: Daycare and Taxes 03-25-2019, 11:39 AM
Replies: 11
Views: 710
Posted By TomCopeland
summer off

Here's an article I've written about this: http://tomcopelandblog.com/will-take-time-off-summer
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