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#1
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Looking Into Possibilities...
Hello, I am new here and have some questions! I am interested in starting a family daycare, but only if I can use a separate space. I was considering building an open, non-home like building, but it would be considered a commercial building requiring it to pass the same inspections as a center. That would be costly, so now I'm looking into building an actual home that is only used for daycare. I was told that as long as it's built as a home, it would be considered residential even if I don't live there. I have many questions,but first I am interested in how tax deductions would work in this scenario. Since everything there would be used only for the business, could I deduct 100% of space, utilities, etc? I am located in Minnesota. Any info helps! Thanks!
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#2
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I am also in Minnesota. I also provide care in a house in which I do not live. I have operated this way since I opened (mid-90ies) I am licensed as family care. There are several women that operate this way in my community. One operates FAMILY child care in a commercial building and is licensed as family care (rule #2) If you have any questions and I can be of help, don't be shy! |
#3
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Thank you in advance for your help! I am mostly interested in how tax deductions work. Are you able to deduct 100% of your daycare homes expenses?
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#4
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I don’t do my own taxes so I don’t know the complexities of it all but yes every expense is counted. |
#5
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Ok.. I'm trying to figure out if I'd be able to make enough income after paying the mortgage, utilities, etc.. after I get started I would like to have my mom work with me, which would be another expense.. I just think it'd be nice to have a separate space and be able to leave your job!
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#6
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You are planning well! I am licensed for 12-14 and usually have 12 I don’t take kids once they start school. My DH is also self-employed and assists as a second (licensed) caregiver when necessary so I don’t currently have an employee that I have to pay but have in the past. If you your area has the need for care options and you can buy/built efficiently you can absolutely turn a good profit. Know your area’s needs and create a good business plan. |
#7
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You can apply for start up grants to help you get all the required equipment and such too...
http://childcareawaremn.org/professi...s-scholarships |
#8
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Just throwing out ideas.... I operate out of the home I live in, but have a completely separate level for daycare. Other than the laundry being located downstairs I don't often go in the daycare area at all when not working. The daycare has its own playroom, kitchen, bathroom, and bedrooms. So I still get a lot of that feeling of leaving work, only my commute is a flight of stairs.
I know that wasn't your question, but possiby another option to consider if you're looking to buy/build anyway. |
#9
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#10
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how does it work if I have my own kids.. say I buy toys that are only for daycare use, but my kids will be at daycare with me obviously.. so if they only play with them during daycare hours can I count these toys as 100% business? or because my own kids touch a toy does it make it not 100% business, even though my kids are counted in the ratio and everything?
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#11
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#12
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Tags |
deduction, separate building for daycare, tax advice |
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