Daycare.com Forum Daycare Forum

Go Back   Daycare.com Forum > Daycare and Taxes

Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

Reply
 
Thread Tools Display Modes
  #1  
Old 01-14-2014, 06:06 PM
ihop's Avatar
ihop ihop is offline
Daycare.com Member
 
Join Date: Sep 2013
Posts: 412
Default Claiming Rent As Income?

My dbf and I live together(his house). If for the 6 months that I have had the daycare here, I have contributed, in cash, half of the utilities and mortgage. He pays all of the bills in their entirety to the companies from his bank account.

He thinks that if I use what I paid, as a deduction, that he will have to them pay taxes on the cash I was contributing to the household.

Does anyone know how this works?
Reply With Quote
  #2  
Old 01-14-2014, 09:04 PM
sahm1225's Avatar
sahm1225 sahm1225 is offline
Advanced Daycare.com Member
 
Join Date: Jun 2010
Location: Midwest - where winter never ends!
Posts: 2,022
Default

You shared the mortgage expense, you weren't his tenant, so I'm going to say no he doesn't claim it as income.
Reply With Quote
  #3  
Old 01-14-2014, 09:23 PM
BrooklynM's Avatar
BrooklynM BrooklynM is offline
Provider
 
Join Date: Sep 2013
Location: California
Posts: 517
Default

I think your bf is correct. If you are trying to write off your housing as a deduction, it would be like you are renting from your bf, and he would need to claim that as rental income since he is able to write off the full mortgage interest from his taxes, otherwise you both benefit from the same mortgage payment. I'm not a CPA though, just check with one and they will let you know!
Reply With Quote
  #4  
Old 01-15-2014, 06:01 AM
craftymissbeth's Avatar
craftymissbeth craftymissbeth is offline
Legally Unlicensed
 
Join Date: May 2012
Location: Midwest
Posts: 2,367
Default

I wouldn't think he'd have to claim it as income. It wasn't income... it was just your portion of the bills. Maybe Tom will see this and chime in.
Reply With Quote
  #5  
Old 01-15-2014, 08:21 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default rent?

Quote:
Originally Posted by ihop View Post
My dbf and I live together(his house). If for the 6 months that I have had the daycare here, I have contributed, in cash, half of the utilities and mortgage. He pays all of the bills in their entirety to the companies from his bank account.

He thinks that if I use what I paid, as a deduction, that he will have to them pay taxes on the cash I was contributing to the household.

Does anyone know how this works?
If you want to deduct the amount you paid, your friend will have to treat it as rent and report it as income on Schedule E. He can also claim some house expenses as a deduction on Schedule E.

If you don't try to deduct it as rent, he doesn't have to report it as income.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #6  
Old 01-15-2014, 10:02 AM
ihop's Avatar
ihop ihop is offline
Daycare.com Member
 
Join Date: Sep 2013
Posts: 412
Default

Hmmm. I hate when I'm not right

Does this also go for utilities, since it is obviously a daycare expense?
Reply With Quote
  #7  
Old 01-15-2014, 11:57 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default utilities

Quote:
Originally Posted by ihop View Post
Hmmm. I hate when I'm not right

Does this also go for utilities, since it is obviously a daycare expense?
If your name is on the utility bill you can deduct the time-space% as a business expense. If it's not, then you can't deduct it unless your boyfriend claims it as rent.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Tags
income - profit, income tax, rent, time space percentage

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
MMK Question Recording Income? Stepping Daycare and Taxes 5 11-06-2013 01:58 PM
Cashier’s Check Fee And Rent - Tom? CrackerJacks Daycare and Taxes 5 10-17-2013 04:03 PM
rent a space or rent a house? allsmiles Daycare Center and Family Home Forum 4 12-04-2012 12:36 PM
Food Program Reimbursements For Own Child As Income MomofAAA Daycare and Taxes 2 02-08-2011 05:10 PM
Food Program Income/or Not??? Lisa4kids Daycare and Taxes 3 01-04-2011 09:58 AM


All times are GMT -7. The time now is 07:05 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming