Question for all the home childcare providers! (keeping track/write offs) - Mothering Forums

Forum Jump: 
 
Thread Tools
#1 of 8 Old 07-10-2007, 07:12 PM - Thread Starter
 
coldfeet's Avatar
 
Join Date: Jun 2006
Posts: 704
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hello mamas! I just started as a home childcare provider. I have 2 children of my own (5 and 8) and I am watching a 7 yo, 5 yo, and 3 yo. I am not charging that much because it's for a family friend -- he just got full custody of his kids and is trying to get back on his feet after his ex-wife 'screwed' him over. :

However, he is claiming the costs, so I have to, too. I also want to write things off and I've tried to Google things, but all I've really come up with is that writing things off and keeping track of things for a home daycare is more unique than other home businesses. I can't find anything about the kinds of things I can write off (besides utilities, food, etc). I thought I heard before that I can write off cleaning supplies (?). What other things can I write off? I want to buy a wagon and maybe a jungle gym and trampoline for our (huge) backyard. Can I write these off?

Also, I will be using the standard meal and snack rates to write off. One of my problems, though, is that they will eat breakfast and dinner with us sometimes. So I am looking for a fairly easy way to keep track of the meals that they eat with us.

Do any of you keep spreadsheets in MS Excel or use a special software?

THANKS SO MUCH!! I'm sure all of your answers and/or advice will be extremely helpful!!
coldfeet is offline  
Sponsored Links
Advertisement
 
#2 of 8 Old 07-10-2007, 08:27 PM
 
Mama Dragon's Avatar
 
Join Date: Dec 2005
Location: Apparently on MDC
Posts: 10,555
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
The government doesn't care if you feed them sometimes, just claim 2 meals and a snack (minimum) for every 8 hours you watch them.

You can claim part of your housing (rent or mortgage) based on what % of the house is used and how many days a month. Say your rent is $800 and you use 1/2 uyour home for day care and watch them 15 days a month, you could write off $400. If you use the phone at all, the computer, figure out your total usage in % and deduct it from your total cost. If you buy any toys for the day care kids, a a pool, deduct the amount based on how much they use vs how much they don't use it. If they are the only kids using a pool, then you can write off the full price (including part of your water bill), but if your kids use it as well, guesstimate how much and write off the % the day care kids use it.

I duck the IRS as much as possible but I do a little research in case I need to cover my butt

Amy ~ Web Designing Single Mom to 4: DD14, DS12, DS5, DS3
Mama Dragon is offline  
#3 of 8 Old 07-10-2007, 09:48 PM
 
littlemizflava's Avatar
 
Join Date: Oct 2006
Location: GTA,ontario,canada
Posts: 1,393
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
THAK YOU i need to find that out too now i know one more thing i forgot to look in to
littlemizflava is offline  
#4 of 8 Old 07-11-2007, 09:16 PM - Thread Starter
 
coldfeet's Avatar
 
Join Date: Jun 2006
Posts: 704
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Thanks so much for your response, Synthea!
coldfeet is offline  
#5 of 8 Old 07-14-2007, 09:08 AM
 
BinahYeteirah's Avatar
 
Join Date: Oct 2002
Location: Australia
Posts: 3,094
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Synthea™ View Post
Say your rent is $800 and you use 1/2 uyour home for day care and watch them 15 days a month, you could write off $400.
Most of your advice is good, but I'm not sure about this part.

Usually, the percentage of your utilities, rent, and some other expenses that you can claim is determined by what I have heard called the "space-time percentage". First you find the percentage of your home's space (the area/square-footage) that you use for home daycare. This may be 100%. If there are areas that you never use, exclude that area, but regular use, even for short periods of time, counts. Then you find your time percentage. This is the number of hours during the year that the kids were in your care in your home. You can also add time spent doing preparations or clean up if it is directly related to your care of the children. So you could add the time you use to clean up, but not all of it if you are also cleaning up personal messes. You can count the time you spent asking this question on the Internet, because it is related to your income-producing activity. But you can't count the time you spent reading other threads with no relevance. So if you have the children 40 hours per week, 50 weeks out of the year, that's 2000 hours that year out of 8766 hours. In this case, the home was used for childcare approximately 23% of the time. Then you multiply your space percentage by your time percentage to arrive at the space-time percentage. If you use 100% of your home for childcare, you could deduct 23% of your utilities, your rent, etc. If you own your home, it is a more complicated whether to deduct part of mortgage payment, because of capital gains tax, so check on that if it is relevant to you.

This website is a great resource.
BinahYeteirah is offline  
#6 of 8 Old 07-14-2007, 12:40 PM
 
Mama Dragon's Avatar
 
Join Date: Dec 2005
Location: Apparently on MDC
Posts: 10,555
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
You're right, it didn't occur to me that those 15 days wouldn't be 24 hours a day.

Here's from the horse's mouth:
http://www.irs.gov/publications/p587/index.html

Amy ~ Web Designing Single Mom to 4: DD14, DS12, DS5, DS3
Mama Dragon is offline  
#7 of 8 Old 07-15-2007, 04:54 AM
 
BinahYeteirah's Avatar
 
Join Date: Oct 2002
Location: Australia
Posts: 3,094
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Ah, but even if it was, the time-space percentage would still only be 25% (50% space * 50% time = 25%). So you could deduct $200 from an $800 rent. :

That's a good link, btw. Thanks.
BinahYeteirah is offline  
#8 of 8 Old 07-15-2007, 12:22 PM
 
melissabb's Avatar
 
Join Date: Jun 2006
Location: London, Ontario, Canada
Posts: 825
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Sorry, I won't be much help here. I actually have an accountant who figures it all out for us as hubby is also self-employed. Basically, I get an 8.5X11 inch daytimer from the dollar store. When you open it up an entire months calendar fits on the two pages laid out. Then for every day a child is here I write their name in on the squre for that day of the calendar. At the end of the year I just count them, write a receipt, keep a copy for my accountant and give one to the parents. As for expenses, I just keep lots and lots of receipts and give them to the accountant too. Sure, there are some non-daycare stuff on some of them but I think it offsets the cost of stuff I don't have receipts for like yard sale purchases and small stuff I pick up with my own gorceries etc from time to time. In the end it all works out pretty close I think.

My accountant also writes of a big portion of my van (school runs), my utilities and most of my house. I use two upstairs bedrooms once a day for the little ones to nap. And, I have a whole room in my home that is used for daycare and where the big ones nap. I use the kitchen, bathroom, living room, entry way, and hallway all for daycare. Basically that only leaves my basement, one bathroom and one bedroom that are not used in my write offs.

I have never paid more than $300 in taxes for a year and that I make well over $40K a year.

goorganic.jpgsaynovax.gif Daycare Provider Who Strives To Encourage Children To Follow Their Innate
 
www.allnaturaldaycare.com
melissabb is offline  
Reply

Quick Reply
Message:
Drag and Drop File Upload
Drag files here to attach!
Upload Progress: 0
Options

Register Now

In order to be able to post messages on the Mothering Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may post new threads
You may 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
Trackbacks are On
Pingbacks are On
Refbacks are Off