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#Where to put contractor expenses on 1120s how to#

These are supplies that are usually used to maintain your home or used by your household.

Gas, electric, garbage, phone (only if you have an exclusive daycare line), water, sewer, cable, internetĭoing some upgrades or need to make some improvements because of the daycare? You can write off a portion of these expenses.

These are the expenses that can result from owning (or renting) and maintaining your physical residence. What else would you add? Did you know that you can also claim the cost of service and repair contracts that come with the furniture? Home Expenses Any furniture or appliance that you use in the daycare and for personal use needs to have the T/S% applied. Some items you can write off the whole cost while others will need to have your T/S% applied. Furniture & Appliancesįurniture and appliance purchases can be written off as home daycare tax deductions. If they are used by your child outside of daycare hours then you can only deduct the T/S% amount of the purchase price. Make sure you are making a note on receipts if some of these items are used both by your own child and the daycare.

Pack n’ plays, bouncers, jumpers, cribs, changing tables….

These are all the supplies that are directly used by the children and daycare.

If any items are used by BOTH your household and your home daycare you can only deduct the T/S% of the original purchase price. I’ve seen so many new providers think that they can write off 100% of things that you are actually only allowed a percentage of, like utilities or household cleaners to name a few. Many of the items below are allowed to be used as an expense only with you T/S% applied. If you are not familiar with it, please read this article from Tom Copeland. This the most important calculation for home daycare businesses.

If you are new to home daycare please make sure that familiarize yourself with rules for Time/Space Percentage calculations (T/S%). This is just a general list to get you thinking about what you use and how you use it in your home daycare. There are so many deductions you can take but please remember that not all may apply to every home daycare and/or there may be some that I have missed. Home daycare is a unique business and because of this, you can write of things that beginning providers easily miss.īelow you will find my list of common home daycare tax deductions. These may not necessarily be the categories you use on your taxes This post is about making sure you don’t miss expenses that can easily be written off. Also, the categories below are strictly for separating expenses in clear categories within this post.

#Where to put contractor expenses on 1120s how to#

Just to be clear this is not a post about how to do your taxes.

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