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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 11-02-2010, 08:22 AM
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Default Taxes: Can You Deduct AAA Service?

Since I tote kids around in my car, is this service deductable?
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Old 11-02-2010, 07:05 PM
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Tom? Anyone?
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Old 11-02-2010, 07:58 PM
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Default Page 96 on Tom's Record-Keeping Guide

Car and Truck Expenses--"These are two rules to remember about claiming expenses for your car. The first one is that the trip's PRIMARY PURPOSE must be for business; the second one is that you need to keep SUFFICIENT EVIDENCE in the form of written records to support your deductions."

1. Keep track of mileage and make sure that you write in on a calendar or somewhere where you went and how many miles it was. If you are even grocery shopping and you buy more business groceries than personal groceries you can still claim the mileage, BUT you can't claim all trips to the grocery store for business.

2. Sufficient Evidence--"To provide written evidence of trips for which you have no receipts--such as trips to the park, school, or library-you can ask the parents to write you a note saying that you took their child to the park, etc. Other records that count as sufficient evidence includes receipts, canceled checks, bank deposit slips, field trip permission forms, entrance tickets, mileage logs, and photographs.


There are lots of rules on this topic in the book, too many to write about. You can also claim depreciation on your car just like many other things in your home. Have you done any depreciation of items before on taxes? I would recommend you go to a professional this year to help you out.
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Old 11-03-2010, 06:09 AM
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Well th eonly thing is though that AAA service annual service fee is not milage, or anything, it is a service that provides you with free towing if you break down, or run out of gas, or need your car jumped, and I cant find anything on this topic.
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Old 11-03-2010, 07:09 PM
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Default Aaa

You could only deduct costs of AAA if you use the actual expenses method of claiming car expenses. If you do, then you can deduct the business use % of this cost (business use = business miles divided by total miles driven). If you use the standard mileage rate you cannot deduct AAA membership.
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Old 11-05-2010, 05:31 AM
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Which way do providers get a better advantage? Actual or standard? Or does it just depend on each situation?
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Old 11-08-2010, 05:50 PM
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Default Standard or Actual?

Probably most providers would come out better using the actual expenses method, but most providers use the standard mileage rate because it is easier to calculate.
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