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Old 01-14-2011, 01:36 PM
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TomCopeland TomCopeland is offline
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Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,057
Default Christmas decorations

Are Christmas decorations deductible?

It depends. You can deduct all expenses that are "ordinary and necessary" in your business.

I'll give two examples:

Provider A spends $200 on Christmas decorations. She involved her day care children in putting them up. She celebrates Christmas with the children by reading stories, singing songs, exchanging gifts, and generally incorporating Christmas into the learning curriculum of the children in her care. The cost would be deductible.

Provider B spends $200 on Christmas decorations. She doesn't involve the children in this expense. She doesn't incorporate it into her curriculum. The cost would not be deductible.

It's up to you to decide which provider you are. If you are provider A you need to keep some records to show what you did to incorporate Christmas into your curridulum.
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