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Daycare and Taxes>Making Christmas Gifts for DCK
HappyHeartsChildCare 12:38 PM 12-02-2015
I want to sew mermaid tail or shark tail blankets for the DCKs this year. Can I consider the money spent on fabrics and supplies as "gift expense"? And if I use fabric that I already have bought previously (no receipts), can I still expense it?

The DCKs will open the gifts during the Christmas party and take them home.
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TomCopeland 03:26 PM 12-02-2015
Originally Posted by HappyHeartsChildCare:
I want to sew mermaid tail or shark tail blankets for the DCKs this year. Can I consider the money spent on fabrics and supplies as "gift expense"? And if I use fabric that I already have bought previously (no receipts), can I still expense it?

The DCKs will open the gifts during the Christmas party and take them home.
Yes, you can deduct up to $25 per child per year as a gift.
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HappyHeartsChildCare 03:33 PM 12-02-2015
Thanks!
Will I be able to deduct even if I use fabric that I have purchased previously? I don't have receipts anymore, but I can go online to price out the fabric that I use.
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TomCopeland 06:12 PM 12-02-2015
Originally Posted by HappyHeartsChildCare:
Thanks!
Will I be able to deduct even if I use fabric that I have purchased previously? I don't have receipts anymore, but I can go online to price out the fabric that I use.
Yes, go online to estimate the price.
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Josiegirl 02:34 PM 12-06-2015
$25 per year? It's been that forever it seems. Not per holiday or event but per year? That doesn't buy a whole lot for a kids' birthday, Christmas, if you get them a little something for Valentine's Day, etc., etc.

JMO but they should increase that.
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Blackcat31 04:01 PM 12-06-2015
Originally Posted by Josiegirl:
$25 per year? It's been that forever it seems. Not per holiday or event but per year? That doesn't buy a whole lot for a kids' birthday, Christmas, if you get them a little something for Valentine's Day, etc., etc.

JMO but they should increase that.
I think its generous that the IRS even allows that.

Usually the rule is "necessary and required" for anything we deduct as a business expense.
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midaycare 05:55 PM 12-06-2015
Originally Posted by Blackcat31:
I think its generous that the IRS even allows that.

Usually the rule is "necessary and required" for anything we deduct as a business expense.
I think we get shafted. Other businesses can deduct so much more. Contributions to charity being just one example.
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spud912 09:30 PM 12-06-2015
Originally Posted by midaycare:
I think we get shafted. Other businesses can deduct so much more. Contributions to charity being just one example.
Yes I agree.... I think generosity should be rewarded. We're already taxed on those purchases.
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Josiegirl 03:16 AM 12-07-2015
There are a lot of things we get for daycare that IMO are not required or 100% necessary. We get them because it might make our days easier or we'll have more to offer the dcks. We do what we can with what we have most of the time but in this particular issue, you take a whole year and only 25 bucks, it's not a lot.
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Unregistered 12:22 PM 12-07-2015
My tax preparer says that if I give away items during a party they are supplies, not gifts. I use the $25 for anything I give parents. I have not asked if it is $25 per person or $25 per family though.
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Blackcat31 03:02 PM 12-07-2015
Originally Posted by midaycare:
I think we get shafted. Other businesses can deduct so much more. Contributions to charity being just one example.
Aren't we allowed to deduct contributions to charity too?
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midaycare 08:33 AM 12-08-2015
Originally Posted by Blackcat31:
I think its generous that the IRS even allows that.

Usually the rule is "necessary and required" for anything we deduct as a business expense.
Necessary and required ... whose perspective, lol? The government? QRIS? Me?

If I buy if for daycare, it gets deducted. I may not need another 20 books, but I'm still going to buy them. I may not need IKEA organizational storage cubes, but I have them and deducted them. I don't need a lot of things, but I have them.
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midaycare 08:37 AM 12-08-2015
Originally Posted by Blackcat31:
Aren't we allowed to deduct contributions to charity too?
Not as a business, but on our personal taxes, yes. I still claim charity contributions my husband and I deduct, but not from the daycare.

Which is a shame for me because I have the kids involved in two charities and "we" (meaning I) donate weekly.
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TomCopeland 12:28 PM 12-09-2015
Originally Posted by Blackcat31:
Aren't we allowed to deduct contributions to charity too?
You can only deduct contributions to a qualified charity as a personal itemized expense on Schedule A. It's not a business expense.
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Tags:christmas gift expenses, christmas gifts, tom copeland
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