Daycare.com Forum
Daycare and Taxes>Homeowner Association Fees
MarinaVanessa 12:43 PM 01-10-2013
My husband and I just got married last year and he already owned this home before he and I even started dating. I'm all new to claiming bills, mortgage interest etc. (everything has always been in his name and still is even at this point). I've got the other stuff figured out but I'm a little confused when it comes to our homeowner's association dues.
Our homeowner association dues include our water and part of our trash/recycle pick-up. It doesn't cover it all because they only cover small trash bins for both recycle and trash removal. When I started my daycare we quickly realized that we needed a bigger receptacle so we upgraded both bins to accommodate all of the daycare's trash and recyclables. I claimed the difference that we paid for the bigger bins (which is billed to us directly from the trash/recycle company) but now that I am married how to I figure out what portion of the homeowner association dues I can claim?
Our homeowner's association dues cover trash/recycling (for small bins), our water usage (to a certain point which we have never exceeded), landscaping for greenery and trees surrounding our home and for common/shared areas, pool maintenance (our community has 4 pools and each home is designated to one) and other homeowner association type stuff.
The property management company that handles payment for this stuff and our homeowner's association board that handles all of our association matters won't break down the dues for me (can't tell me how much goes towards water, how much goes towards trash/recycle, how much goes towards landscaping etc.). All they say is that it's all inclusive. How can I figure out what portion of my dues I can claim and what I can't. Or can I not claim association dues because even without a daycare we would need to pay it?
Thanks. Maybe this is a Tom Copeland question
Our homeowner association dues include our water and part of our trash/recycle pick-up. It doesn't cover it all because they only cover small trash bins for both recycle and trash removal. When I started my daycare we quickly realized that we needed a bigger receptacle so we upgraded both bins to accommodate all of the daycare's trash and recyclables. I claimed the difference that we paid for the bigger bins (which is billed to us directly from the trash/recycle company) but now that I am married how to I figure out what portion of the homeowner association dues I can claim?
Our homeowner's association dues cover trash/recycling (for small bins), our water usage (to a certain point which we have never exceeded), landscaping for greenery and trees surrounding our home and for common/shared areas, pool maintenance (our community has 4 pools and each home is designated to one) and other homeowner association type stuff.
The property management company that handles payment for this stuff and our homeowner's association board that handles all of our association matters won't break down the dues for me (can't tell me how much goes towards water, how much goes towards trash/recycle, how much goes towards landscaping etc.). All they say is that it's all inclusive. How can I figure out what portion of my dues I can claim and what I can't. Or can I not claim association dues because even without a daycare we would need to pay it?
Thanks. Maybe this is a Tom Copeland question
sharlan 01:13 PM 01-10-2013
IHMO, I would use your time/space percentage. That's what I used to do. I used the park and pool for the kids.
MarinaVanessa 01:47 PM 01-10-2013
Originally Posted by sharlan:
IHMO, I would use your time/space percentage. That's what I used to do. I used the park and pool for the kids.
Yeah see I use the "common areas" within our community such as the open grassy areas and pathways that intertwine within the whole housing track for daycare things also but not the pool. Our pool doesn't have a really shallow end (the most shallow area is 4ft) and since I only care for kids from 6 weeks to 5 years old I prefer not to let them use it.IHMO, I would use your time/space percentage. That's what I used to do. I used the park and pool for the kids.
I just wanted to make sure that I was allowed to claim a portion as a deduction since I would be paying the same amount whether or not I did daycare.
TomCopeland 10:31 AM 01-11-2013
You are entitled to deduct the time-space % of your home owners association dues. Just because you are paying more for something after you open your business, doesn't mean you can't deduct a portion of it. For example, property tax, mortgage interest, utilities, house insurance, etc don't change after you start using your home for your business. Homeowners association dues are part of the cost of operating your business out of your home. You must pay it to keep your home. Therefore, it's partly deductible.
Join me for a Daycare.com webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
Join me for a Daycare.com webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
MarinaVanessa 02:36 PM 01-11-2013
Originally Posted by TomCopeland:
You are entitled to deduct the time-space % of your home owners association dues. Just because you are paying more for something after you open your business, doesn't mean you can't deduct a portion of it. For example, property tax, mortgage interest, utilities, house insurance, etc don't change after you start using your home for your business. Homeowners association dues are part of the cost of operating your business out of your home. You must pay it to keep your home. Therefore, it's partly deductible.
Join me for a Daycare.com webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
Thanks, that's great news Tom. Thanks for the help You are entitled to deduct the time-space % of your home owners association dues. Just because you are paying more for something after you open your business, doesn't mean you can't deduct a portion of it. For example, property tax, mortgage interest, utilities, house insurance, etc don't change after you start using your home for your business. Homeowners association dues are part of the cost of operating your business out of your home. You must pay it to keep your home. Therefore, it's partly deductible.
Join me for a Daycare.com webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
.I'm definitely going to attend the webinar. I'm already working on my taxes so by the time the webinar comes around hopefully I'll only have to worry about adding the stuff that I missed.