care-care 05:46 AM 02-20-2011
Tom what if all my belongings and startup costs end up coming out to more than i even made this year I watched a baby for 2 months made 985.00 but i know all my stuff is gonna amount to way more than that i havent even put my all my start up costs in. would i keep entering these furniture items in? or wait and put stuff in for 2011?
TomCopeland 07:29 AM 02-20-2011
It's not uncommon for a new provider to have more expenses than income. You want to still claim it all for two reasons. One - the law requires you to claim any deductions you are entitled to. Two - it will benefit you to claim them.
If you claim everything and report a loss, the loss gets put on your Form 1040 and will reduce any other income from your family (spouse). Your house expenses on Form 8829 can't create a loss, but you can roll over these expenses to the next year. Thus, you can reduce income in 2011.
Join me for my February 28th webinar on "How to Reduce Your 2010 and 2011 Taxes" sponsored by daycare.com. For more info:
https://www.daycare.com/news/taxes/t...d-webinar.html
care-care 08:31 AM 02-20-2011
Thanks for the fast response!! You are a god send to all of us on here!