Default Style Register
Daycare.com Forum
Daycare and Taxes>Year End Inventory?
Punkin.Butts 10:09 AM 12-27-2013
I started my daycare in 2013. I completed a Starting inventory as it said to do from various sources including Tom's books.

Because I did that and plan to use it as a deduction, do I also need to complete a YEAR END inventory?

due to toys/items being broken thru out the year or being lost or thrown away etc? Do i need to have a beginning inventory for 2014?
Reply
TomCopeland 12:55 PM 12-27-2013
Originally Posted by Punkin.Butts:
I started my daycare in 2013. I completed a Starting inventory as it said to do from various sources including Tom's books.

Because I did that and plan to use it as a deduction, do I also need to complete a YEAR END inventory?

due to toys/items being broken thru out the year or being lost or thrown away etc? Do i need to have a beginning inventory for 2014?
The reason to do an inventory of items used in your business is to then depreciate them (or deduct them, depending on their cost). At the end of each year you should review your inventory record to see if some of the items on the list are gone (broken, etc.). If so, you can claim the remaining amount of depreciation for those items.
Reply
Punkin.Butts 09:24 PM 12-28-2013
Originally Posted by TomCopeland:
The reason to do an inventory of items used in your business is to then depreciate them (or deduct them, depending on their cost). At the end of each year you should review your inventory record to see if some of the items on the list are gone (broken, etc.). If so, you can claim the remaining amount of depreciation for those items.
Thank you! I am working on going back thru everything because a lot of stuff did not survive the year!


Another question: Holiday Items.. such as Christmas tree and ornaments. I had a tree full of glass ornaments this year which MY kids know better than to touch.. however, I lost quiet a few really nice expensive ones due to the daycare kids, even tho I had it gated off from them they are quick! SO hubby and I just went tonight and purchased "shatterproof" ornaments because they are on after christmas clearance. We also got an artificial tree (instead of a real one like this years) that can be set up and decorated with plastic and shatterproof ornaments that we purchased with the daycare in mind, we will still do OUR tree, but in a different location where the Daycare isn't allowed as it's not used for daycare. Can I deduct this as a 100% daycare expense or is it still a shared expense
Reply
TomCopeland 08:54 AM 12-29-2013
Originally Posted by Punkin.Butts:
Thank you! I am working on going back thru everything because a lot of stuff did not survive the year!


Another question: Holiday Items.. such as Christmas tree and ornaments. I had a tree full of glass ornaments this year which MY kids know better than to touch.. however, I lost quiet a few really nice expensive ones due to the daycare kids, even tho I had it gated off from them they are quick! SO hubby and I just went tonight and purchased "shatterproof" ornaments because they are on after christmas clearance. We also got an artificial tree (instead of a real one like this years) that can be set up and decorated with plastic and shatterproof ornaments that we purchased with the daycare in mind, we will still do OUR tree, but in a different location where the Daycare isn't allowed as it's not used for daycare. Can I deduct this as a 100% daycare expense or is it still a shared expense
You can deduct 100% of the artificial tree and shatterproof ornaments.
Reply
Tags:2014, deduction, inventory, taxes
Reply Up