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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 02-18-2019, 03:47 PM
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viyan viyan is offline
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Join Date: Feb 2019
Location: California
Posts: 2
Smile Provider lives with parents, not rent or own home

I read a lot in this forum and realized that I need some advice before I open my business.

I am applying the license(it will done in 2 months), and planning to start a daycare before I remodeling the kitchen and bathroom. I though if I pay for these, I could deduct these for the first year I start up my business.

However, when I attended Tom's workshop and read articles, I realized that maybe I was wrong. I need your helps to give me the solutions!

I live with my parents. The house are under my parents' name, and my name is shown on the TOD Deed of this house. That means I could legally live and inherit the house. I never rent my bedroom from my parents, but I pay all the utilities, home improvement, HOA and property tax, etc.

My question is what is the best way my family could get the maximum tax return?

I am the provider, and my parents will help me part time when they have time, they won't ask me to pay for them or rent their house for business.

I wonder what way we could apply the start up rule and deduct home expense and household inventory?

Here are some solutions I am not sure are correct:
1. Let your mom hired you, and you mom could deduct the home expense and household inventory(my question is my mom is not licensed provider, can she deduct these expense and apply start up rule)

2. Rent room from you parents, then I could apply start up rule and deduct home expense and household inventory??

3. Add your name on the ownership of the house?(If I do so, I may lose the discount for first time purchase a house)

I need help to know what is the best solution, because we are planning to remodel part of the kitchen and maybe the bathroom and buy new supplies to prepare the daycare business, we need to decide who(me or my parents) pay these fee could get maximum tax return. We also would like to know if I am the licensed provider but not own the house I live in, can I get tax return for the household inventory. Does it help if my name is shown on th TOD Deed.

Many thanks!!!!!!!
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  #2  
Old 02-18-2019, 04:51 PM
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284878 284878 is online now
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Join Date: Oct 2013
Location: Michigan
Posts: 1,675
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I think that Tom Copeland would be the best one to answer these questions. If he doesn't respond to you here then check out his website at www.tomcopelandblog.com. There's a way to contact him there and he typically gets back to you within 24 hours.

Also it might be helpful for him to know what state you are in.
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  #3  
Old 02-18-2019, 05:11 PM
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viyan viyan is offline
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Join Date: Feb 2019
Location: California
Posts: 2
Default I am in California

I am in California. Thanks!
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  #4  
Old 02-18-2019, 05:24 PM
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TomCopeland TomCopeland is offline
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Join Date: Jun 2010
Location: St. Paul, Minnesota
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Default questions

Quote:
Originally Posted by viyan View Post
I read a lot in this forum and realized that I need some advice before I open my business.

I am applying the license(it will done in 2 months), and planning to start a daycare before I remodeling the kitchen and bathroom. I though if I pay for these, I could deduct these for the first year I start up my business.

However, when I attended Tom's workshop and read articles, I realized that maybe I was wrong. I need your helps to give me the solutions!

I live with my parents. The house are under my parents' name, and my name is shown on the TOD Deed of this house. That means I could legally live and inherit the house. I never rent my bedroom from my parents, but I pay all the utilities, home improvement, HOA and property tax, etc.

My question is what is the best way my family could get the maximum tax return?

I am the provider, and my parents will help me part time when they have time, they won't ask me to pay for them or rent their house for business.

I wonder what way we could apply the start up rule and deduct home expense and household inventory?

Here are some solutions I am not sure are correct:
1. Let your mom hired you, and you mom could deduct the home expense and household inventory(my question is my mom is not licensed provider, can she deduct these expense and apply start up rule)

2. Rent room from you parents, then I could apply start up rule and deduct home expense and household inventory??

3. Add your name on the ownership of the house?(If I do so, I may lose the discount for first time purchase a house)

I need help to know what is the best solution, because we are planning to remodel part of the kitchen and maybe the bathroom and buy new supplies to prepare the daycare business, we need to decide who(me or my parents) pay these fee could get maximum tax return. We also would like to know if I am the licensed provider but not own the house I live in, can I get tax return for the household inventory. Does it help if my name is shown on th TOD Deed.

Many thanks!!!!!!!
It will be easier for me to answer your questions by phone. Call me at 651-280-5991. I'm doing training in California until the end of the month.
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http://www.tomcopelandblog.com
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