Daycare.com Forum
Daycare and Taxes>Difference Between What We Use For DC & What We Can Deduct
legomom922 07:21 AM 01-14-2011
I'm confused..I know the some of things that we are able to write off such as aluminum foil, light bulbs, lawn care, etc. What I dont understand though is WHY we can write stuff off that really have nothing to do with DC...For a example, I buy foil for cooking, but I never use foil for my DC...A lawn company come and put down fertilizer, and grub killer, and treats my bushes, and I'm glad I can write it off, but I dont know why I am able, when it really doesnt effect kids. I guess in a way I feel kinda guilty decudting this stuff whn its not related?? Does that make sense? I feel like I am doing something wrong or illegal, or just trying to push the boundaries a little to lower my taxes.
Can anyone explain why things that seem unrelated to DC we are able to write off?
I also down to 1 DC kid, and do not plan on adding anymore, so wouldnt the IRS feel like for kid, this might be excessive?
Can anyone explain why things that seem unrelated to DC we are able to write off?
I also down to 1 DC kid, and do not plan on adding anymore, so wouldnt the IRS feel like for kid, this might be excessive?
kendallina 08:03 AM 01-14-2011
In your example with the foil (that you buy it for your use and never actually use it for daycare), I wouldn't deduct it. Just because you can deduct something doesn't mean that it's appropriate to do so. When I see that tin foil is deductible, I only take that to mean I should deduct it if I use it for home and business. That's the purpose of the deduction.
For the example of the lawn service, I think that's totally reasonable to deduct. Parents may not even consider using a provider who had overgrown grass, bushes that were unruly, etc. It's important that we present ourselves just as any business would. Don't feel guilty about that... (although, I totally know what you mean about feeling guilty sometimes about all the deductions..)
I don't have an answer for your last part about whether the IRS would consider it excessive to have so many deductions for only one child...no idea...maybe Tom will chime in.
For the example of the lawn service, I think that's totally reasonable to deduct. Parents may not even consider using a provider who had overgrown grass, bushes that were unruly, etc. It's important that we present ourselves just as any business would. Don't feel guilty about that... (although, I totally know what you mean about feeling guilty sometimes about all the deductions..)
I don't have an answer for your last part about whether the IRS would consider it excessive to have so many deductions for only one child...no idea...maybe Tom will chime in.
TomCopeland 01:29 PM 01-14-2011
Kendallina's answer is exactly correct.
Providers should keep in mind a standard of reasonableness. You will get into trouble if you claim losses more than 2 out of every five years. If you have only one child you may want to cut back on some of the expenses you might otherwise claim. But you are entitled to claim all expenses that are "ordinary and necessary" for your business.
Providers should keep in mind a standard of reasonableness. You will get into trouble if you claim losses more than 2 out of every five years. If you have only one child you may want to cut back on some of the expenses you might otherwise claim. But you are entitled to claim all expenses that are "ordinary and necessary" for your business.
Sharon.Riley 03:14 PM 01-16-2011
This doesn't come up much for me since you developed the Standard Meal Allowance but, if the original poster uses tin foil to cook, doesn't that mean she uses if to cook DC food and, is therefore, at least T/S% deductible? The same would be true of the light bulbs, lighting the DC facility, laundry detergent washing DC linens and clothes and most cleaning supplies used to clean the DC facility?
Of course, this wouldn't apply to a provider with only 1 DCK but, wouldn't it to providers with full rosters?
Of course, this wouldn't apply to a provider with only 1 DCK but, wouldn't it to providers with full rosters?
TomCopeland 08:57 AM 01-17-2011
Sharon - Yes, all those expenses would be partly deductible.