Daycare.com Forum
Daycare and Taxes>"Charity?"
midaycare 10:18 AM 07-23-2015
You know how businesses offer their services for free - like a car wash business might give free car washes to a raffle, or a grocery store might donate groceries to places in need?
What about us? I have a feeling this is a longshot, but ... I have someone that comes between 2-3 afternoons each week this summer that I don't charge for. Dcm doesn't have the money and I really don't mind, so I do it for free. No worries, I don't feel taken advantage of and dcm always uses me as a last resort.
I didn't really think about this until now, but is it a write-off?
What about us? I have a feeling this is a longshot, but ... I have someone that comes between 2-3 afternoons each week this summer that I don't charge for. Dcm doesn't have the money and I really don't mind, so I do it for free. No worries, I don't feel taken advantage of and dcm always uses me as a last resort.
I didn't really think about this until now, but is it a write-off?
Heidi 10:38 AM 07-23-2015
The expenses are a write off (food, materials, equipment for this child), but you can't write off the tuition your foregoing. It's not an expense...it's just not income, either.
midaycare 10:41 AM 07-23-2015
Originally Posted by Heidi:
The expenses are a write off (food, materials, equipment for this child), but you can't write off the tuition your foregoing. It's not an expense...it's just not income, either.
Gotcha. Thanks The expenses are a write off (food, materials, equipment for this child), but you can't write off the tuition your foregoing. It's not an expense...it's just not income, either.
Blackcat31 10:57 AM 07-23-2015
Tom Copeland says no you can not write off "discounts", free care or services you did not charge for. You just claim less income (therefore pay less taxes) like Heidi said...
http://www.tomcopelandblog.com/2015/...deduct-it.html
http://www.tomcopelandblog.com/2015/...deduct-it.html
Unregistered 09:29 AM 07-24-2015
I agree. You can't write off something you gave away free.
midaycare 10:41 AM 07-24-2015
Originally Posted by Blackcat31:
Tom Copeland says no you can not write off "discounts", free care or services you did not charge for. You just claim less income (therefore pay less taxes) like Heidi said...
http://www.tomcopelandblog.com/2015/...deduct-it.html
Okay, makes sense but ... How do other business do this? I worked as a business manager for a few companies while getting my masters degree, and companies would write off services all the time. Tom Copeland says no you can not write off "discounts", free care or services you did not charge for. You just claim less income (therefore pay less taxes) like Heidi said...
http://www.tomcopelandblog.com/2015/...deduct-it.html
Like when I worked with an accounting company and they would write off doing the books for some poorer people. They wrote off their time. Or when I worked for an ice machine company ... When they donated ice bowls, they wrote these off, as well as their time spent making them. These companies had accountants, and different ones, so I would assume everything was on the up and up...
Blackcat31 11:55 AM 07-24-2015
Originally Posted by midaycare:
Okay, makes sense but ... How do other business do this? I worked as a business manager for a few companies while getting my masters degree, and companies would write off services all the time.
Like when I worked with an accounting company and they would write off doing the books for some poorer people. They wrote off their time. Or when I worked for an ice machine company ... When they donated ice bowls, they wrote these off, as well as their time spent making them. These companies had accountants, and different ones, so I would assume everything was on the up and up...
I don't know but maybe Tom will have an answer for that. Okay, makes sense but ... How do other business do this? I worked as a business manager for a few companies while getting my masters degree, and companies would write off services all the time.
Like when I worked with an accounting company and they would write off doing the books for some poorer people. They wrote off their time. Or when I worked for an ice machine company ... When they donated ice bowls, they wrote these off, as well as their time spent making them. These companies had accountants, and different ones, so I would assume everything was on the up and up...
Great question though! I would have thought the same thing as I've heard similar stories.
Heidi 02:24 PM 07-24-2015
They were writing off their actual expenses...of paying an employee to do work that they did not charge for. They still had the expense, but not the income.
TomCopeland 03:24 PM 07-24-2015
Originally Posted by midaycare:
Okay, makes sense but ... How do other business do this? I worked as a business manager for a few companies while getting my masters degree, and companies would write off services all the time.
Like when I worked with an accounting company and they would write off doing the books for some poorer people. They wrote off their time. Or when I worked for an ice machine company ... When they donated ice bowls, they wrote these off, as well as their time spent making them. These companies had accountants, and different ones, so I would assume everything was on the up and up...
The difference is this. Corporations can make charitable contributions and they can deduct the materials, supplies, etc. that they donate. But family child care providers as a sole proprietor cannot make charitable contributions as a business expense because they are not incorporated.Okay, makes sense but ... How do other business do this? I worked as a business manager for a few companies while getting my masters degree, and companies would write off services all the time.
Like when I worked with an accounting company and they would write off doing the books for some poorer people. They wrote off their time. Or when I worked for an ice machine company ... When they donated ice bowls, they wrote these off, as well as their time spent making them. These companies had accountants, and different ones, so I would assume everything was on the up and up...
midaycare 12:53 PM 07-25-2015
Originally Posted by TomCopeland:
The difference is this. Corporations can make charitable contributions and they can deduct the materials, supplies, etc. that they donate. But family child care providers as a sole proprietor cannot make charitable contributions as a business expense because they are not incorporated.
Thanks Tom! The difference is this. Corporations can make charitable contributions and they can deduct the materials, supplies, etc. that they donate. But family child care providers as a sole proprietor cannot make charitable contributions as a business expense because they are not incorporated.
On a side note, I think it's a little unfair for us smaller businesses ... But hey. No one is asking my opinion!
Controlled Chaos 12:36 PM 07-29-2015
So I am an LLC...as I am incorporated I could write off donating my time...right?
TomCopeland 07:59 AM 07-30-2015
Originally Posted by Controlled Chaos:
So I am an LLC...as I am incorporated I could write off donating my time...right?
You can't deduct as a charitable deduction time spent helping a charity, regardless of whether you are incorporated or not. You can deduct miles driven for a charity (14 cents a mile).So I am an LLC...as I am incorporated I could write off donating my time...right?