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I run a daycare from home and have tax questions!!

i know all the usuals I can claim but I don't know a few..

house taxes
house payment
house insurance
what about toys I buy my kids but the daycare kids use them and eventually end up with them?

Thanks so much...

Answer Question

Asked by Anonymous at 2:57 PM on Feb. 8, 2011 in Money & Work

Answers (8)
  • are you and LLC or are you incorporated?

    If not you can not claim business expenses (toys, house payment ect.) because you're not technically a business.

    Answer by UpSheRises at 2:58 PM on Feb. 8, 2011

  • i am licensed (SP?) I know I can claim toys and all that i don't know about the ones I asked about

    Comment by Anonymous (original poster) at 3:06 PM on Feb. 8, 2011

  • Well I am a small business owner and I'm able to deduct my office space that I run my home biz out of. So I'm able to take the sq. footage of our house, deduct the amount for my office and then do the same for house taxes, heating, insurance and so on. I would check into it. I would think you would be able to deduct a good amount.


    Answer by csmsand at 3:08 PM on Feb. 8, 2011

  • Being licensed doesn't make you a business.

    It sound like you're not actually a business. Talk to someone at your bank about becoming and LLC so you can claim that stuff for next year. Also, do you have liability insurance? If you don't, you really should.


    Answer by UpSheRises at 3:20 PM on Feb. 8, 2011

  • i claimed all of that last year i pay business taxes so idk

    Comment by Anonymous (original poster) at 3:49 PM on Feb. 8, 2011

  • You can claim a percentage of your house payment and insurance depending on the percent of your house you use for business and your business hours... it is really technical how they come up with the formula... I suggest talking to an accountant and they can help you a lot!

    Answer by kamore at 4:31 PM on Feb. 8, 2011

  • You have to figure out how much sq. footage of your home is used in the daycare, then work out what the eprcentage is based on the houses sq footage. For example, if you have a 2,000 sq ft home and the living room is the room used and it's 500 sq ft, then 25% of your homes mortgage payment can be claimed as business rent....but this may only work if you actually have a DBA and Tax ID or other state requirements, without which you are operating illegally.

    Answer by Mom2Jack04 at 7:32 PM on Feb. 8, 2011

  • i have a tax ID

    Comment by Anonymous (original poster) at 8:22 PM on Feb. 8, 2011

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