Daycare.com Forum

Go Back   Daycare.com Forum > Daycare and Taxes

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.

Reply
 
Thread Tools Display Modes
  #1  
Old 11-12-2015, 01:39 PM
spedmommy4's Avatar
spedmommy4 spedmommy4 is offline
Daycare.com Member
 
Join Date: Mar 2015
Location: Northern Oregon
Posts: 933
Default Childcare Grants and Taxes- Questions

My business received two grants from First 5 this year.

One was a quality award grant. It did come with stings attached. I had a list of approved items I could spend it on. (Eg: curriculum, increasing employee wages, trainings, etc)

The second was a health & safety reimbursement grant. First 5 came out and assessed my program and gave me a very specific list. I could buy only the "safety improvement" items from the list and then get reimbursed after completing the project to their statistic action, or I would get nothing.

My questions are:

Are grants in any way different from the income I receive from parents in the eyes of the IRS?
And, if so, are these two grants treated differently?
Reply With Quote
  #2  
Old 11-12-2015, 02:36 PM
Michael's Avatar
Michael Michael is online now
Admin & Owner-Daycare.com
 
Join Date: Aug 2007
Location: Palm Springs CA, Moorpark CA, Ocean Ridge, FL
Posts: 6,666
Default

I think Tom Copeland answered this here: http://daycare.com/forum/showthread.php?t=67741

"You must report as income the value of your scholarship and the $500. Then, you can deduct as a business expense the value of the scholarship and the $500 based on the normal rules of depreciation. "
__________________
Michael Castello
http://www.ccin.com/about.html
Reply With Quote
  #3  
Old 11-12-2015, 02:54 PM
TomCopeland's Avatar
TomCopeland TomCopeland is online now
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 2,752
Default grants

Quote:
Originally Posted by spedmommy4 View Post
My business received two grants from First 5 this year.

One was a quality award grant. It did come with stings attached. I had a list of approved items I could spend it on. (Eg: curriculum, increasing employee wages, trainings, etc)

The second was a health & safety reimbursement grant. First 5 came out and assessed my program and gave me a very specific list. I could buy only the "safety improvement" items from the list and then get reimbursed after completing the project to their statistic action, or I would get nothing.

My questions are:

Are grants in any way different from the income I receive from parents in the eyes of the IRS?
And, if so, are these two grants treated differently?
You must report these grants as income, in the same way as parent tuition. You can then deduct as business expenses the items you purchase.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #4  
Old 11-13-2015, 06:56 AM
spedmommy4's Avatar
spedmommy4 spedmommy4 is offline
Daycare.com Member
 
Join Date: Mar 2015
Location: Northern Oregon
Posts: 933
Default

Quote:
Originally Posted by TomCopeland View Post
You must report these grants as income, in the same way as parent tuition. You can then deduct as business expenses the items you purchase.
Thank you Tom.
Reply With Quote
Reply

Tags
grants, taxes

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Daycare Supply Grants Unregistered Daycare Center and Family Home Forum 7 10-30-2015 04:02 PM


All times are GMT -7. The time now is 08:40 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming