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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 03-09-2011, 08:36 AM
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dEHmom dEHmom is offline
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Default Average #'S For Certain Things?

OK, so I've done lots of searching on here to find something, but nothing has given me any insight.

I was wondering, what people have as average #'s for tax purposes.

What is a good number that would not raise any red flags for the following...


supplies- ex...25/month x t/s% (for craft stuff, cleaning, tp, etc)

equipment-

cable????-




I know someone else asked about a cell phone but it wasn't clear to me. EX...I carry my cell phone 100% of the day because moms/dads text me to inform me of things, check in, i text them, or they let me know next weeks schedule, sick cancels, etc etc etc. Is any portion of this deductible or no? it is not a strictly business phone, but I generally only use it for business purposes.


And when you are keeping track of extra hours on top of business hours Tom, would you have to list the individual times/hours? Or just writing in 20 hours in this month extra for prep, cleaning, shovelling, etc?
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Old 03-09-2011, 02:01 PM
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30 views and no one has a response at all?
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Old 03-09-2011, 03:24 PM
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I think I've said this before on an almost similar topic. Those numbers that you ask about I pay an accountant for. I don't know what they are but the CPAs seem to have a grip on it. Maybe Tom Copeland knows. I am sure a lot of people would love to see some numbers here including me.

Maybe there is some insight here: http://www.daycare.com/forum/tags.ph...eduction+limit
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Old 03-09-2011, 03:33 PM
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Default Averages

I don't like averages. Are you average? Few are.
To look to averages to try to figure out what is a red flag is a mistake. If you spend more on something than the next person, deduct it. If you spend less, don't try to deduct more!
In general, the IRS computers look at individual tax returns and compute averages for various expenses at various income levels. If you earned $20,000 in income your average expense for supplies would probably be lower that those earning $70,000 in income. So, focusing on the average supply expense without taking into account income is not helpful.

Cell phone - Don't try to deduct something as 100% business unless you actually use it 100% for your business. If the cell phone is your second phone, deduct the business portion.

Hours - You want to have at least two months of careful records each year tracking the specific activities and hours you spent on business activities after the children left. Putting down 20 hours a month without any back up is likely to be challenged in an audit.
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Old 03-09-2011, 05:19 PM
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I would recommend to have a calendar or at least sheet of paper and on each day write the start time and how long it lasted and what you did.

Wednesday, March 9, 2011:
5:20 pm-6:10 pm Sweep, vacuum,wash floors (:50)
6:30 pm-7:45 pm Create curriculum for "All About Me" (1:15)
7:45 pm-8:30 pm Daycare.com (:45)

2:50 total on outside daycare hours daycare-related matter for today.
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Old 03-09-2011, 05:28 PM
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Quote:
Originally Posted by dEHmom View Post
OK, so I've done lots of searching on here to find something, but nothing has given me any insight.

I was wondering, what people have as average #'s for tax purposes.

What is a good number that would not raise any red flags for the following...


supplies- ex...25/month x t/s% (for craft stuff, cleaning, tp, etc)

equipment-

cable????-




I know someone else asked about a cell phone but it wasn't clear to me. EX...I carry my cell phone 100% of the day because moms/dads text me to inform me of things, check in, i text them, or they let me know next weeks schedule, sick cancels, etc etc etc. Is any portion of this deductible or no? it is not a strictly business phone, but I generally only use it for business purposes.


And when you are keeping track of extra hours on top of business hours Tom, would you have to list the individual times/hours? Or just writing in 20 hours in this month extra for prep, cleaning, shovelling, etc?
Um I dont know quite understand your question but is this what you are looking for?

$ made this yr $4000
Expenses 1st yr, $2100
t/s % 14.53
hrs worked when kids not present 209 for the 1/2 yr
mileage 846
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Old 03-10-2011, 06:06 AM
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I sent off my spreadsheets to my accountant. He came back and said it looks really good and nothing would cause a red flag.

I did $25 across the board for supplies- lysol, tp, soaps, etc then applied t/s% to it.

income was under 4000 for the yeah (I didn't have full times) so and I started late in the year and closed for part of it, so I had to do my t/s % differently. It was 19.98%

My way of tracking hours was just simply to put Actual care hours in one column, and then extra hours in a 2nd column and put reasons in a 3rd column. Ex....cleaning, prep, sorting, shoveling, etc.

I guess I did that wrong and should've kept track of each individual activity and what time I spent on it for a minimum of 2 months to get an average?
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Old 03-10-2011, 06:31 AM
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ok NEVERMIND!!! Sorry I just found the answer on another thread about the other hours.
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Old 03-10-2011, 10:55 AM
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Quote:
Originally Posted by dEHmom View Post
I sent off my spreadsheets to my accountant. He came back and said it looks really good and nothing would cause a red flag.

I did $25 across the board for supplies- lysol, tp, soaps, etc then applied t/s% to it.

income was under 4000 for the yeah (I didn't have full times) so and I started late in the year and closed for part of it, so I had to do my t/s % differently. It was 19.98%

My way of tracking hours was just simply to put Actual care hours in one column, and then extra hours in a 2nd column and put reasons in a 3rd column. Ex....cleaning, prep, sorting, shoveling, etc.

I guess I did that wrong and should've kept track of each individual activity and what time I spent on it for a minimum of 2 months to get an average?
just curious but how did u get over 19% t/s when you u were only open part of the yr?

I was 14% and I opened in June, and use 100% of my 2400sq ft home....So how did u get that?
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Old 03-10-2011, 11:09 AM
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I was open since May, and I have kids into the evenings too, so some days I have kids after school till 8 or 9pm.
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