afmama 01:56 PM 07-14-2011
Really don't know where to begin in keeping track of things for taxes....is there a good previous post or article about the basics? I've had my license for a month and have been keeping receipts for obvious daycare items, first aid kit, fire extinguisher, toys.
What other receipts should I keep? should I keep all my house bills as well to claim the time/space percentage? And what is the time/space percentage EVEN ?
I also got a mileage book, but I don't really know how to use it?! Any miles daycare related right? Does that include loading up the daycare kids to take MY son to swimming or preschool?
Also just bought a 2011 mini-van brand new....can we deduct that?
What "reasonable proof" do I need to claim these things? I guess I'm looking to see what systems other people have.
Also I keep track of the hours I have children, but what about all the other time I spend working on daycare stuff? How are those hours "deducted" or paid for I guess...
Thanks for any help!!
Michael 02:17 PM 07-14-2011
grandmom 02:54 PM 07-14-2011
Buy an accounting program. I love Quicken. If you buy that one you can pm me and I'll talk on the phone with you about how mine is set up.
TomCopeland 03:27 PM 07-14-2011
My book
Family Child Care Record Keeping Guide lists over 1,000 allowable deductions and descriptions of how to organize your records.
Keep receipts for everything associated with your home and your business.
The time-space percentage is a formula you use to determine how much you can deduct of expenses that are used by both your business and your family. See my blog for several articles that explain this in detail. My Record Keeping book also explains this.
You can deduct miles as long as the primary purpose of the trip is business. So, if the primary purpose is to take your child to preschool, you can claim it, even though your day care children come along.
Yes, you can deduct a portion of your new van, using either the standard mileage rate or a portion of the actual costs.
Reasonable records include receipts (the best), cancelled checks, credit/debit card statements, other written records (notes you write) and photographs.
You can count all hours you spend in your home on business activities, including time when day care children are not present. The more hours you work the higher your time-space % and the higher your business deductions. Again, my Record Keeping Guide explains this in detail.