Josiegirl 03:57 AM 07-30-2013
I've always been confused as to why we cannot deduct telephone expenses? Most of my phone hours are spent talking with the dcps.
Also, how much of the computer usage(internet, paper, ink, etc.) can we claim? Again, most of my computer time, etc., is used with daycare.
Thanks!
Childminder 07:36 AM 07-30-2013
I can deduct my cell phone but not my land line I believe it is time/space % and my computer is at a higher percentage, 85% if I remember correctly because it is used almost entirely for daycare.
Plus I use my time on the phone and computer doing business when children aren't present in my calculations. Just keep track of all time on the phone and computer as well as time cleaning, prepping for daycare, meal prep, etc…when children aren't present for two months and average that over the year.
TomCopeland 10:01 AM 07-30-2013
Originally Posted by Josiegirl:
I've always been confused as to why we cannot deduct telephone expenses? Most of my phone hours are spent talking with the dcps.
Also, how much of the computer usage(internet, paper, ink, etc.) can we claim? Again, most of my computer time, etc., is used with daycare.
Thanks!
In the 1980s all home-based businesses used to be able to deduct a portion of their monthly telephone bill. That was eliminated to help reduce the budget deficit. So, although it's logical that providers should be able to deduct their phone that is used in their business, they can't.
The law now says that providers (and all other home-based businesses) can't deduct any portion of the first phone line into their home. But, you can deduct the business portion of a second or third phone line used in your business. If the second or third phone line is used 100% for business, deduct 100%. If it's used for both business and personal purposes, use your time-space % to determine the business portion of the cost.
In addition, you can deduct any business long distance calls and the business portion of the cost of any phone and any services such as caller id.
TomCopeland 10:03 AM 07-30-2013
Originally Posted by Josiegirl:
I've always been confused as to why we cannot deduct telephone expenses? Most of my phone hours are spent talking with the dcps.
Also, how much of the computer usage(internet, paper, ink, etc.) can we claim? Again, most of my computer time, etc., is used with daycare.
Thanks!
You can deduct the business portion of your Internet fee, and paper, ink, and the cost of the computer/printer/fax/copier. Use your time-space % or an actual business use percentage based on tracking your actual business use over several months.