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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 01-27-2015, 09:31 AM
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TheGoodLife TheGoodLife is offline
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Default Daycare Closing, Tax Year Question (Tom)

I have a question about my closing. I have my families pay a two week deposit, to be applies to their last 2 weeks. I am closing the daycare, and the last payments my families all made were in December 2014 since their deposit they made in 2014 was applied for their 2015 tuition. But I am open for a few weeks in 2015- just no income coming in. Do/can I treat 2014 as my closing year and just not include any daycare business in 2015, since I have no income to declare or to take expenses from?
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Old 01-27-2015, 12:34 PM
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Default closing

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Originally Posted by TheGoodLife View Post
I have a question about my closing. I have my families pay a two week deposit, to be applies to their last 2 weeks. I am closing the daycare, and the last payments my families all made were in December 2014 since their deposit they made in 2014 was applied for their 2015 tuition. But I am open for a few weeks in 2015- just no income coming in. Do/can I treat 2014 as my closing year and just not include any daycare business in 2015, since I have no income to declare or to take expenses from?
You don't have any income in 2015 but you do have some expenses (food, etc.). Go ahead and fill out your 2015 tax return next year and claim the expenses, but no income. You'll show a loss.
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Old 01-27-2015, 12:59 PM
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You don't have any income in 2015 but you do have some expenses (food, etc.). Go ahead and fill out your 2015 tax return next year and claim the expenses, but no income. You'll show a loss.

Thanks Tom, just wondering- will a loss affect my taxes, if I don't have any business income for it to take from? I thought a loss only went against business income, to reduce what you claim for tax purposes?
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Old 01-27-2015, 04:26 PM
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Thanks Tom, just wondering- will a loss affect my taxes, if I don't have any business income for it to take from? I thought a loss only went against business income, to reduce what you claim for tax purposes?
If you showed a business loss of $500, this gets transferred onto your Form 1040. If you or your husband have other income that is reported on Form 1040, it will be reduced by $500, so you will save some federal and state income taxes. So, a business loss will reduce personal income.
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Old 01-28-2015, 12:43 PM
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Originally Posted by TomCopeland View Post
If you showed a business loss of $500, this gets transferred onto your Form 1040. If you or your husband have other income that is reported on Form 1040, it will be reduced by $500, so you will save some federal and state income taxes. So, a business loss will reduce personal income.
Thank you!
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