Unregistered 08:26 PM 02-06-2012
What is the rule about things bought for my own children, but that daycare kids use too. This includes birthday/Christmas gifts to toys bought at the store "just because". Can I claim those things as deductions? Everything in my house if fair game to daycare kids (except my DD's American Girl collection!) LOL
Also, this past summer, I had a few older kids since school was out, including my daughter. I bought one of those easy set swimming pools for them to swim in. Although the majority of the time it was used was during daycare hours (90% of the time), it was used a few times as well for personal use. Since I bought it primarily for daycare kids to use, can this be a deduction as well? What about chemicals/floats we used as well? And could the dirt we bought to level off the land be included as a deduction as well?
Thanks!
lilcupcakes09 03:55 AM 02-07-2012
I have always deducted most of the toys I buy for my children too, as long as they are being played with otherwise.....I also read somewhere last week, that if your children only play with things while daycare kids are present, but not before or after, those can be claimed as 100% business. But if anything is ever used for personal, even just a few times, you need to use the T/S%. And as long as your daycare children are allowed to use the pool, all of that should be deductible through T/S%, even the dirt(just not sure what category that would go in)
My understanding is it needs to be used on a regular basis for daycare not primarily for daycare to claim. If you are going to use a % other than your time space percentage you have to be able to show proof and documentation of the calculation. For example: Keep a log of everytime and the amount of time (in minutes) the pool was used and for daycare or not daycare. Then divide the daycare use minutes by the total used minutes and then you have a actual daycare use percentage. The time space percentage on items seems to work itself out. Some toys my daycare kids may use %20 or the time but others 75% but when calculated with my time space percentage it works itself out in the end when my time space %. I may get cheated out of a few dollars here and there but I am sure there are items that didnt get used as much for daycare than my avg ts percentage of 45%.
TomCopeland 08:43 AM 02-07-2012
Originally Posted by Unregistered:
What is the rule about things bought for my own children, but that daycare kids use too. This includes birthday/Christmas gifts to toys bought at the store "just because". Can I claim those things as deductions? Everything in my house if fair game to daycare kids (except my DD's American Girl collection!) LOL
Also, this past summer, I had a few older kids since school was out, including my daughter. I bought one of those easy set swimming pools for them to swim in. Although the majority of the time it was used was during daycare hours (90% of the time), it was used a few times as well for personal use. Since I bought it primarily for daycare kids to use, can this be a deduction as well? What about chemicals/floats we used as well? And could the dirt we bought to level off the land be included as a deduction as well?
Thanks!
You can use the time-space % to deduct toys you bought for your own children but are also used by your business. In general, use your time-space % to deduct items used for business and personal use. You can use an actual business use % on some items that are used a lot more than your time-space %, but less than 100%, such as your pool. Keep records for a month or two to determine your actual business use. Same thing for chemicals/floats. Include the cost of the dirt with the pool.