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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 12-27-2013, 05:54 PM
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Default What's Better Mileage Or Actual Use

I bought a 15 passenger van for my daycare this year and my cpa told my I can either deduct the actual expense of the car along with repairs gas and what not. Or I can do mileage. My question is if I did mileage can I still do depreciation on the car itself? I use this car only for daycare but use my personal car for all grocery trips, bank trips and what not. What would benefit me more?
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Old 12-27-2013, 07:13 PM
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There's a lot of record keeping when it comes to actual expenses but it should be easier for you if you only use your van for daycare. As far as using your car for grocery trips and other errands that could be considered daycare related I believe you can still use the mileage for that car instead which, in my opinion, would be easier.

Tom Copeland can probably answer your question about mileage (standard rate) expenses and depreciation.
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Old 12-27-2013, 08:29 PM
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I have kept track for years and the standard mileage rate has won every year, by a lot.
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Old 12-27-2013, 09:40 PM
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my big question is can I count the actual cost of the vehicle along with the mileage or can I only do that with the actual expenses
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Old 12-27-2013, 11:33 PM
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Quote:
Originally Posted by kelsey's kids View Post
my big question is can I count the actual cost of the vehicle along with the mileage or can I only do that with the actual expenses
I think it's either or. As in , you can either deduct actual expenses (gas, tires, maintenance, fluids etc.) or you can claim the mileage as standard mileage rate. The standard mileage rate that the IRS allows you to claim is expected to include stuff like gas, wear and tear etc. so you can only do one or the other.

So for example, since I claim the standard mileage rate I can't also deduct gas that I put into my daycare van, or a tune-up, or new tires etc.
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Old 12-28-2013, 08:18 AM
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Originally Posted by MarinaVanessa:420607
Quote:
Originally Posted by kelsey's kids View Post
my big question is can I count the actual cost of the vehicle along with the mileage or can I only do that with the actual expenses
I think it's either or. As in , you can either deduct actual expenses (gas, tires, maintenance, fluids etc.) or you can claim the mileage as standard mileage rate. The standard mileage rate that the IRS allows you to claim is expected to include stuff like gas, wear and tear etc. so you can only do one or the other.

So for example, since I claim the standard mileage rate I can't also deduct gas that I put into my daycare van, or a tune-up, or new tires etc.
Right I understand that part just not if I claim mileage can I still depreciate the 3500 that we purchased the van for?
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Old 12-28-2013, 09:58 AM
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my big question is can I count the actual cost of the vehicle along with the mileage or can I only do that with the actual expenses
If you use the standard mileage method you cannot claim depreciation on the car. The only expenses you can claim when using the standard mileage method are: $.565 per business mile, parking, tolls, the business portion of car loan interest and the business portion of property tax on the car (the tax you pay each year with your registration - not in all states).
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