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Daycare and Taxes>Tax Question and My Own Children
busymomof2 02:48 PM 11-15-2010
I am new to dc...just started in Aug. I have been entering data into Minute it. However, for deducting expenses what percentage do I use when my own daughter participates in dc. She is 4yo, plays with all the toys, eats the same food, does the crafts/curriculum, activities, parties, uses the electricity, etc. What percentage do I use to deduct toys, supplies, house bills when my own daughter is in the dc. I have Tom's book but am confused also about office supplies. Although the majority are dc my husband will occass print a handout for class. Help I would appreciate some help on this. I have my space % and working on my time I have to wait till end of the year to get that since I don't know how much time I will be doing when the kids are not present?
TomCopeland 02:53 PM 11-15-2010
In general, count as a business all supplies, etc. used by your own child during day care hours. The main exception is food. You can't deduct any of the food served to your own children. Since you aren't using 100% of your office supplies as a business expense, you can't deduct 100% of their cost. You can use your time-space percentage, or you can use an actual business use percentage if you keep careful records of exactly how much of the office supplies are used for your business. You won't know what your time-space percentage is until the end of the year, since you won't know until then how many hours you have worked.
Tags:tax write off, taxes, tom copeland
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