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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.

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Old 09-19-2012, 10:19 AM
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Default Curious - Deductions

Just curious if I am in line with others on my deductions.
Curious how much you deduct? Mine figures to about 1/2.
$57,000 came down to $29,000 after deductions.
I just feel like I am still missing something.
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Old 09-19-2012, 02:33 PM
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Some helpful Time/space % threads: http://www.daycare.com/forum/tags.ph...ace+percentage
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Old 09-20-2012, 09:03 AM
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Default Deductions

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Originally Posted by Unregistered View Post
Just curious if I am in line with others on my deductions.
Curious how much you deduct? Mine figures to about 1/2.
$57,000 came down to $29,000 after deductions.
I just feel like I am still missing something.
In my experience the deductions that providers most often miss are: car loan interest, depreciation on furniture and appliances purchased before they went into business, too low food expense (because they didn't count meals and snacks served that were not reimbursed by the Food Program), too low time-space % (because they didn't count the hours they used their home for business when children were not present), too low time-space % (because they didn't count all the rooms in their home as regularly used for their business).
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Old 09-21-2012, 06:18 PM
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How do you start out with a dollar amount anyways? I know how to do my time/space and such, but where do people get a dollar amount for things? This is my first year in business.
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Old 09-22-2012, 06:21 PM
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Default depreciation

When you depreciate items you owned before you went into business you must estimate their value at the time your business began. This is always a guess. What would a stranger pay you for this item? Take pictures of these items for your records. A couch you bought 5 years ago for $1,000 is not now worth $800. Maybe $200? It depends. If you do a reasonable guess you will be fine. I helped a provider who was audited last year and claimed that the value of her items was $34,000 when her business began. She had a spreadsheet listing several hundred items around her home. She guessed all her numbers. In the end, the IRS accepted everything.
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Old 09-24-2012, 09:00 AM
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I have been in business over 10 years, but never deducted the depreciation of all of my household things when I began. Is there a way to do this now?
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Old 09-25-2012, 10:08 AM
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Default Claiming back depreciation

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I have been in business over 10 years, but never deducted the depreciation of all of my household things when I began. Is there a way to do this now?
Yes. Use IRS Form 3115. See my article on this:http://www.tomcopelandblog.com/2011/...ductions-.html
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