Little People 05:14 AM 01-03-2011
I have a friend who is opening a home daycare and she has been doing all her set up in 2010. She has been buying toys, tables, car seats and so on. But she is not taking any children till the middle of January 2011. My question from her is, She wants to know if she can wait to claim what all she bought on her taxes for 2011? I told her I would ask in here and maybe Tom could have an answer for this too.
KEG123 06:20 AM 01-03-2011
That's a good question, because basically I am doing the same thing. I've bought many items already, and I've done my cpr classes (50 bucks)... hmm... Tom?!
TomCopeland 09:59 AM 01-03-2011
You can start claiming expenses for your business in the year your business begins. Your business begins when you are ready to care for children and are telling others that you are ready. It doesn't matter if you are licensed or not. So, since your friend was not ready to care for children til 2011 she can't claim any business expenses in 2010. She can, however, claim these 2010 expenses on her 2011 tax return.
Little People 10:01 AM 01-03-2011
Originally Posted by TomCopeland:
You can start claiming expenses for your business in the year your business begins. Your business begins when you are ready to care for children and are telling others that you are ready. It doesn't matter if you are licensed or not. So, since your friend was not ready to care for children til 2011 she can't claim any business expenses in 2010. She can, however, claim these 2010 expenses on her 2011 tax return.
Thank you Tom!
KEG123 10:24 AM 01-03-2011
Thanks! That helps!