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Old 06-15-2009, 08:30 PM
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Chickenhauler Chickenhauler is offline
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Join Date: Jun 2009
Location: MN
Posts: 437

Originally Posted by mac60 View Post
I have been a provider for 10 years, and I have ALWAYS paid taxes. I pay federal, state, social security, city, and a school tax on my income. Yes, by the time I deduct what I can, I am just above poverty level wages. But think about it. Of the 14 hours each day that I am up and in my home, I am doing daycare related things or actually caring for daycare children at least 12 of them. Lights out at about 9:30, furnace/ac turnded down, etc. When you figure in the 40% of my utility bill that I can deduct, I am the one getting shorted. I use the majority of my heat/ac/electric, etc during daycare house, but I can't deduct all that I use.

For example: On a hot humid day here in the summer, I will have my air on all day long to where it is comfortable for the kids, maybe about 76 or 77. Kids leave at 5:15, we go to bed here about 9:30, and our air gets turned up to about 80 so it won't run thru the night unless it gets really hot. This is why I feel we don't get compensated truly for what we use.
Either you're rolling in some serious revenue, or you need a new accountant-the amount of deductions allowed for a home based business are unbelievable if the accountant knows their tax law.

One major one that is overlooked is business mileage deduction, which for 2008 was 58.5 cents per mile when used for business purposes. Trip to the grocery store? Business. Toy store? Business. Training and certification? Business. It adds up fast, and if you keep an accurate journal, you'll find that an overwhelming majority of your miles is business related. Ten here, 20 there, and before you know it, you have a $5k+ deduction in mileage.

I always urge anyone who is operating a business to talk to a quality CPA who specializes in self employed persons. A good accountant will save you their fee in the first 15 minutes of the appointment.

You may feel you're getting the raw end of the stick on your power bill, but who else gets to write off their pets, lawn care, snow removal, furniture, carpets, etc on their personal home?
Spouse of a daycare provider....which I guess makes me one too!
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