Daycare.com Forum Daycare 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 09-15-2010, 05:48 AM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default Taxes: Equipment Write Off Question

So Tom Copeland agreed we need to copy & keep reciepts so they dont fade etc. So I want to buy a scanner/copier to do this. My question is, if I am buying this equipment only for my daycare and otherwise I would NOT be needing it, is this considered a 100% business expense? Now to add to this, since I will be having a copier now in my home, if I use it to copy something else, then would it not be a 100% buisness expense? Maybe then I would have to use the % of business its used for? Say 90%?

I guess I am confused, because my ONLY purpose for buying it is because I have a daycare, but I COULD also use it for other stuff because now it would be more conveinant than running to the store to make a copy of something.

Does this make sense?
Reply With Quote
  #2  
Old 09-15-2010, 01:36 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default 100% or not?

Items you purchase are deductible as a business expense based on how you use them, not why you bought them. So, if you bought a scanner/copier only because of your business but you used it for personal purposes, it's not a 100% business expense. Sorry!

On the other hand - what if you bought a toy for your own child's birthday. If your child only used it personally it's not a business deduction. But if your child played with this toy with the other day care children, now you can deduct the business portion of the toy (use your time-space percentage).

Tom
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #3  
Old 09-15-2010, 01:42 PM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Thanks Tom! I was hoping you would respond!

How about carpet cleaning? It would be soley for the benefit of the daycare, but I cant help but walk on it...
Reply With Quote
  #4  
Old 09-17-2010, 10:39 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default carpet cleaning

Carpet cleaning for rugs that you also walk on for personal purposes in the evening and weekends is a shared expense (use your time-space %).
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #5  
Old 09-17-2010, 10:46 AM
TGT09's Avatar
TGT09 TGT09 is offline
Daycare.com Member
 
Join Date: Feb 2010
Location: Ohio
Posts: 620
Default

Quote:
Originally Posted by TomCopeland View Post
Carpet cleaning for rugs that you also walk on for personal purposes in the evening and weekends is a shared expense (use your time-space %).
Could you go over calculating the time-space%?? I don't have to be licensed, therefore I don't already know this amount.
Reply With Quote
  #6  
Old 09-17-2010, 12:21 PM
mac60's Avatar
mac60 mac60 is offline
Advanced Daycare.com Member
 
Join Date: May 2008
Location: Northeast
Posts: 1,597
Default

As a provider, there are so many things I am forced to do that cost dollars, that I wouldn't be doing if I wasn't doing daycare. Seems like the whole system is not too fair. For example, my carpet, yes I walk on it, but if a daycare kid pukes on it and I have to pay to have it professionally cleaned, doesn't seem quite fair I can only deduct a % of the cleaning cost. It wouldn't of had to have it cleaned if the daycare kid wouldn't of puked on it. This is what I mean by not quite fair. There are lots of other examples that could be used too. I am on my 3rd area rug in front of my front door to protect my carpet....parents with greasy/dirty shoes ruining my carpet so I started keeping an area run in front of the door, and parents greasy shoes have ruined 2 so far. If it wasn't for people coming into my daycare, I would not have the area rug down.
__________________
mom to many.
Reply With Quote
  #7  
Old 09-17-2010, 12:33 PM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Quote:
Originally Posted by TGT09 View Post
Could you go over calculating the time-space%?? I don't have to be licensed, therefore I don't already know this amount.
You don't have to be liscensed for this. It's a formula that is figured by the amount of time you have DCK's in your home and the sq ft of your home that is used for DC. If you have MMK, you can enter all the info in there, and it will give you your time/space %.
Reply With Quote
  #8  
Old 09-17-2010, 12:36 PM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Quote:
Originally Posted by mac60 View Post
As a provider, there are so many things I am forced to do that cost dollars, that I wouldn't be doing if I wasn't doing daycare. Seems like the whole system is not too fair. For example, my carpet, yes I walk on it, but if a daycare kid pukes on it and I have to pay to have it professionally cleaned, doesn't seem quite fair I can only deduct a % of the cleaning cost. It wouldn't of had to have it cleaned if the daycare kid wouldn't of puked on it. This is what I mean by not quite fair. There are lots of other examples that could be used too. I am on my 3rd area rug in front of my front door to protect my carpet....parents with greasy/dirty shoes ruining my carpet so I started keeping an area run in front of the door, and parents greasy shoes have ruined 2 so far. If it wasn't for people coming into my daycare, I would not have the area rug down.
In this case, I would probably use the % that the item is used for business purposes, so that throw rug may be like 90%? Or I suppose if you took it off after DC hrs, it could then be 100% business.

I use those clorox wipes like crazy and even though I use them for personal, they are used MORE for business, so I claim those as being 90% business.
Reply With Quote
  #9  
Old 09-17-2010, 02:07 PM
mac60's Avatar
mac60 mac60 is offline
Advanced Daycare.com Member
 
Join Date: May 2008
Location: Northeast
Posts: 1,597
Default

But that is not realistic to pull up an 5 x 7 area rug at 5:30 each day and put it down at 6:15 am again. Just where am I to take it. Bottom line, if I wasn't doing daycare I wouldn't be buying area rugs to protect my carpet from inconsiderate people. I am just stating a point that many things we do for daycare cost us lots of money, and if we were not doing daycare we wouldn't be doing these things. Seems these "things" should be 100% deductible. I have never understood and will never understand our tax system. It is a joke. And I find it quite amusing when I can call 3 tax people and get 3 different responses to a question. Just shows it is all in who you ask and what their rendition of the tax law is.
__________________
mom to many.
Reply With Quote
  #10  
Old 09-17-2010, 03:28 PM
Michael's Avatar
Michael Michael is online now
Admin & Owner-Daycare.com
 
Join Date: Aug 2007
Location: Moorpark CA, Ocean Ridge, FL
Posts: 7,806
Default

Quote:
Originally Posted by TGT09 View Post
Could you go over calculating the time-space%?? I don't have to be licensed, therefore I don't already know this amount.
Here are some earlier posts on Time/Space %

http://www.daycare.com/forum/tags.ph...ace+percentage
Reply With Quote
  #11  
Old 09-17-2010, 08:13 PM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Mac60: I agree with you 100%! Now rearding pulling up the rug..Everyday at 530 I take down all my pnp's, and put all daycare stuff away into my basement. Then at 6am I drag it all out again...so just taking up a rug, is alot more realistic to me than what I do everyday! LOL You have it easy!
Reply With Quote
  #12  
Old 09-18-2010, 07:27 AM
MyAngels's Avatar
MyAngels MyAngels is offline
Member
 
Join Date: Aug 2010
Posts: 4,152
Default

Quote:
Originally Posted by TGT09 View Post
Could you go over calculating the time-space%?? I don't have to be licensed, therefore I don't already know this amount.
This formula can be found on IRS form 8829 - Expenses for business use of your home.
Reply With Quote
  #13  
Old 09-18-2010, 08:29 AM
Former Teacher's Avatar
Former Teacher Former Teacher is offline
Advanced Daycare.com Member
 
Join Date: Apr 2009
Location: USA
Posts: 1,305
Default

hmm I guess that means the new laptop I bought that I had planned on using as an expense doesn't cut it

What about things like computer paper/ink and everyday expenses that you use everyday for both personal and business? Does that mean I have to sit there and write about %'s ?

This is all new to me. When we filed our taxes last year, my current family took out all the taxes except federal. That being said, mom told me that I had to file federal. H and R Block told us that I can do self employed and pay my own taxes. Plus I can write off mileage ( I drive 90 miles each day total) plus any added expenses. Such as if I buy the children a toy or if I bought a package of crayons.

Speaking of the laptop, yes I would have bought it anyway. However I use the laptop from a business point because I research online for my curriculum. Plus I use the paper and ink to print up the lessons.

I am SO confused!!
Reply With Quote
  #14  
Old 09-18-2010, 04:30 PM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Yup!! You have to keep track of EACH expense and figure out if it is:
100% business
time/space %
or actual business %

It's not easy!!

The computer, paper and ink, you can write all of that off as time/space %.

I have another question for Tom:

My stepkids sleep in 1 BR 4 nights a month. I just re-decorated the room specifically for my DCK;s..My stepkids are 13 & 15, and I used a baby snoopy theme in the room, LOL, so these older kids are really not getting any benefit out of it at all. So I bought a border, and paint and brushes, and new snoopy curtains, and bedspreads for the bunks, where DCK could nap on. SO do write all of this stuff off as Time/space even though the DCK are here more and longer than stepkids? Or would it be 100% business because it is not benefitting my stepkids, or would it be like a 90% buisness expense?
Reply With Quote
Reply

Tags
tax exempt, taxes, time space percentage, tom copeland

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not 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
State of Maryland Playground Equipment Question? Ms Bunter Daycare Center and Family Home Forum 5 04-23-2014 12:31 PM
Question About Being Unlicensed And Taxes kdalla5 Daycare and Taxes 3 01-16-2011 10:35 AM
What to write off for taxes JeepGirl6 Daycare and Taxes 2 12-30-2010 09:28 AM
Taxes: How Do You Write Off Cable & Internet? legomom922 Daycare and Taxes 15 09-23-2010 08:27 PM
Question About Filing Taxes munchkinsmom Daycare Center and Family Home Forum 2 02-19-2008 05:55 AM


All times are GMT -7. The time now is 03:17 AM.



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