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Daycare and Taxes>Operating Grants- Tom Can You Help Please?
dEHmom 03:40 PM 01-09-2012
I am in Canada and I realize Tom you are not. However, I am hoping you can shed some light on this for me.

I am licensed now, and receive operating grants. Clearly to me this means that I need to spend this on operating costs for the daycare. In my eyes, this would be mortgage, electricity, water, heat, renovations, repairs, etc.


I know that they can audit at anytime, and request 5 yrs worth of records to show that I spent the grants on operating costs associated with the daycare.

I also assume that the mortgage, etc would be claimed at the tsp amount and not the full amount.

A friend of mine takes each grant and applies it towards 3 months worth of mortgage payments, and this is sufficient for the government in terms of spending.



My question is, could I simply show that my mortgage is *** / yr, energy/heat cost is *** / yr, etc and the grant amount is *** / yr and this would be sufficient proof?

Or am I missing something?


ETA: We receive quarterly operating grants based on our attendance (children enrolled).
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Michael 04:53 PM 01-09-2012
I would imagine Tom would not be able to help you there but could only refer to US tax law. Tom Copeland and Daycare.com will be having another webinar for all your questions. We had a poll regarding what everone would like to ask questions about. Most wanted it to be about "2011 Family Child Care Tax Update". https://www.daycare.com/forum/showthread.php?t=35058

I will have more info up as soon as I can get some more specifics together.
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TomCopeland 05:18 PM 01-10-2012
Originally Posted by dEHmom:
I am in Canada and I realize Tom you are not. However, I am hoping you can shed some light on this for me.

I am licensed now, and receive operating grants. Clearly to me this means that I need to spend this on operating costs for the daycare. In my eyes, this would be mortgage, electricity, water, heat, renovations, repairs, etc.


I know that they can audit at anytime, and request 5 yrs worth of records to show that I spent the grants on operating costs associated with the daycare.

I also assume that the mortgage, etc would be claimed at the tsp amount and not the full amount.

A friend of mine takes each grant and applies it towards 3 months worth of mortgage payments, and this is sufficient for the government in terms of spending.

My question is, could I simply show that my mortgage is *** / yr, energy/heat cost is *** / yr, etc and the grant amount is *** / yr and this would be sufficient proof?

Or am I missing something?


ETA: We receive quarterly operating grants based on our attendance (children enrolled).
I hesitate to try to answer your question because I am not familiar enough with Canadian tax law. So, I'll have to recommend that you contact your local tax office, or a tax preparer in your area for help. Sorry!
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