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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 02-23-2013, 10:43 AM
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Reimel61 Reimel61 is offline
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Default Cleaning Expense Question

In Maryland regulations say I have to use paper towels for the children. Can I deduct 100% of half of my paper towel purchases or do I have to use T/S for all paper towel purchases. I wouldn't be purchasing as much if I didn't do daycare as it's only my husband and myself. My T/S percentage is generally 33%.

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Old 02-23-2013, 10:49 AM
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I would like to know this too! We pretty much have cleaning rags that we use for spills and such, and we never really use paper towels... we probably use a roll a month. But if I need to use them for all my daycare kids that cost will be through the roof! I wonder if a DC provider could buy 2 different brands? Have a DC brand and personal brand and then just itemize it that way? Just an idea.... I'm too new to know... but I too would be curious as to an answer...
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Old 02-23-2013, 11:30 AM
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craftymissbeth craftymissbeth is offline
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Wink

I'm super new at this too (not even open yet) and I've been wondering how I'm going to keep these sorts of things separate.

Do we purchase cleaning supplies separately from our household supply?
Do we just store them separately and make sure that we ONLY use the daycare supply during daycare and household supply the rest of the time?
Which supply do we use for the bathroom/kitchen.. since those are T/S% rooms?

Holy guacamole, my head is about to explode!! lmbo

I'm absolutely positive there is a super easy way of doing this and I'm just missing it.
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Old 02-24-2013, 02:21 PM
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Default Paper towels

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Originally Posted by Reimel61 View Post
In Maryland regulations say I have to use paper towels for the children. Can I deduct 100% of half of my paper towel purchases or do I have to use T/S for all paper towel purchases. I wouldn't be purchasing as much if I didn't do daycare as it's only my husband and myself. My T/S percentage is generally 33%.

Thanks
The simple answer is to use your Time-Space % for all items that are used by your business and your family. In your situation, you could estimate an actual business use percentage. Don't claim 100% of paper towels unless you use them 100% for your business. Save all the receipts for paper towels. Track their usage (business and personal) for several weeks to estimate your business percentage. Usually, it's not worth the effort to do an actual business use percentage on smaller expenses such as this, but you are free to do so.
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Old 02-24-2013, 02:22 PM
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Default Paper towels

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Originally Posted by YHD2013 View Post
I would like to know this too! We pretty much have cleaning rags that we use for spills and such, and we never really use paper towels... we probably use a roll a month. But if I need to use them for all my daycare kids that cost will be through the roof! I wonder if a DC provider could buy 2 different brands? Have a DC brand and personal brand and then just itemize it that way? Just an idea.... I'm too new to know... but I too would be curious as to an answer...
Yes, you could buy two different brands and then deduct 100% of those used for your business. You would have to be able to say that your family never used the business brand. Save receipts for all your paper towels, business and personal.
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Old 02-24-2013, 02:24 PM
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Default paper towels

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Originally Posted by craftymissbeth View Post
I'm super new at this too (not even open yet) and I've been wondering how I'm going to keep these sorts of things separate.

Do we purchase cleaning supplies separately from our household supply?
Do we just store them separately and make sure that we ONLY use the daycare supply during daycare and household supply the rest of the time?
Which supply do we use for the bathroom/kitchen.. since those are T/S% rooms?

Holy guacamole, my head is about to explode!! lmbo

I'm absolutely positive there is a super easy way of doing this and I'm just missing it.
No exploding heads, please! Use your time-space % on all shared supplies and other expenses. It's the easy way to go. Save all receipts.
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Old 02-25-2013, 10:16 AM
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Originally Posted by TomCopeland View Post
No exploding heads, please! Use your time-space % on all shared supplies and other expenses. It's the easy way to go. Save all receipts.
If you use TS% on shared expenses, do you need to keep personal receipts as well? I bought seperate toliet paper, kleenexes, ect last year, but I didn't know to keep my personal ones as well so I think I'll just claim what I have with the TS% if that works. Thanks for your help, Tom!
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Old 02-25-2013, 11:01 AM
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Default receipts

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Originally Posted by Mama2Bella View Post
If you use TS% on shared expenses, do you need to keep personal receipts as well? I bought seperate toliet paper, kleenexes, ect last year, but I didn't know to keep my personal ones as well so I think I'll just claim what I have with the TS% if that works. Thanks for your help, Tom!
You should always save all your receipts to show that you aren't deducting 100% of the expense. In your situation, claim the t/s% of the receipts you have, unless you can reconstruct the rest.
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